Office space absorption in Chennai declined by 47 per cent, followed by Mumbai at 29 per cent, during the second quarter of 2017.
“Hyderabad saw 98 per cent of 2Q16’s absorption this quarter (2Q17),” said Ramesh Nair, CEO & Country Head, JLL India.
At around 1.7 million square feet, Bengaluru also inched marginally ahead of the 2Q16 absorption. Pune, which has been facing a supply crunch of quality office space, saw the net absorption in 2Q17 decline by 37 per cent (year-on-year).
Delhi-NCR, which has more than 60 per cent of its total office space occupied by IT players, saw a decline of 22 per cent (y-o-y). “Among other cities, all but Kolkata saw a decline in net absorption figures.
Interestingly, Kolkata saw 189 per cent increase in absorption but on a lower base than any other city,” said Nair.
The pan-India absorption is also down by 1 per cent (y-o-y). Overall absorption is lower because of lower supply hitting the market.
“A lesser number of big-ticket office leasing transactions, preferred mainly by IT players, were observed in this quarter. In comparison to 1H16, supply in 1H17 was also lower by 50 per cent.”