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Indian companies are likely to absorb only 35 million square feet of developed space in India this year as against 40 m sq ft in 2007, according to global real estate consultancy Cushman & Wakefield.
In 2009 and 2010, they needed 25 and 30 m sq ft, respectively, despite the aftermath of a global slowdown, Mr Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, told presspersons here on Tuesday. The consultancy, active in Gujarat for a decade, has also set up an office in Ahmedabad, which it sees as a “stable market.”
Replying to a question, he said domestic realtors seem to be no longer investing overseas and have returned.
About Ahmedabad, he said the city’s office market has seen absorption of eight lakh sq ft in 2011 and 4.40 lakh sq ft so far in 2012.
Demand for office space in 2011 and expected absorption in 2012 has now exceeded pre-recession level of 2007, which was recorded at 6.50 lakh sq ft, he added.
The average mall rentals in Ahmedabad have increased by 18 per cent even as retail mall vacancy is 34 per cent, down from the last quarter due to increased leasing activity. “Although mall vacancy has declined over the quarter, it is still the highest compared to other prominent cities.”
About the residential sector, Mr Dutt said over 32,000 residential units would enter the Ahmedabad market in the next two years, 85 per cent of it (27,000 units) catering to the mid-segment category.
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