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Kolkata witnessed a substantial dip in office absorption rates for in the first half (Jan to June) of 2014. Total net absorption was lower by 36 per cent compared to the same period last year.
This reduction, according property consultants Cushman & Wakefield, was due to subdued demand and lack of pre-committed absorption.
According to its report, in the first half of 2014, the city witnessed 3,19,500 sq ft of office space addition; a 77 per cent decline compared to the corresponding period a year ago. In H1 (January to June) 2013, office space supply stood at 1,384,100 sq ft.
The city witnessed a total supply of 247,000 sq ft during the April to June quarter.
Almost 53 per cent of the total supply in Q2 2014 was in IT development in Salt Lake, and the remaining in commercial development in Park Circus Connector.
Office absorption was mostly in Salt Lake, which witnessed over 90 per cent of the leasing activity in the April to June 2014 period because of high availability of quality Grade A office spaces.
The IT-ITeS sector continued to be the major demand driver with 37 per cent in total net absorption tally. Additionally, the BFSI sector witnessed a significant increase to 21 per cent.
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