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Office space uptake in Bangalore has dropped significantly in the first-three quarters (January to September) of 2012 compared with last year.
The city’s total absorption for three quarters this year was 3.95 million square feet, a drop of 54 per cent over same period last year, said Cushman & Wakefield in its Q3 office market report.
“During the third quarter (Q3), 2012 space absorption is 1.25 million square feet, an improvement of 18 per cent over the previous quarter (Q2) of this year,” said Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield India.
“Office space supply in Bangalore on the other hand saw an increase of over two times over the first nine months of 2012 over the same time previous year,” he added.
In terms of office absorption in the country, Mumbai has overtaken Bangalore.
As for the space supply in Q3, the city saw a reduction by 47 per cent compared to previous quarter at 1.6 million square feet, due to the delay in completion of projects.
The slowdown in absorption has also led to an increase of 2 per cent in vacancy level, which is at 15 per cent in Q3, 2012.
As for as the rental values, it remained unchanged in Q3, 2012 over previous quarter (Q2) but with a downward bias and going forward, said Sanjay Dutt.
In few locations it could experience minor corrections owing to a large quantum of supply that is expected in the Q4, 2012, he added.
In terms of space absorption during Q3, 2012 across all other cities, Mumbai leads with 2.23 million square feet, the city saw an increase of 50 per cent over the previous quarter (Q2).
Chennai recorded the second highest absorption at 1.32 million square feet followed by Bangalore at 1.25 million square feet and National Capital Region (NCR) at 1.2 million square feet.
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