Explore Office Space for Rent in Cities in India
Figures compiled by CB Richard Ellis, one of the largest real estate advisories in the world, show that Indian office space markets absorbed roughly 7 million square feet in the fourth quarter, up 1 million from the previous three months.
Looking at the year-to-year comparison, the squeeze on leasing activity is perhaps even more clearly illustrated by CBRE’s India Office Market View, which shows that 25 per cent more office space, a total of 26 million sq ft, was absorbed in 2012 than in 2011.
The lion’s share, or roughly 70 per cent, of all new leasing activity in the final quarter of last year took place in what is referred to as the National Capital Region (NCR), which includes the areas around New Delhi, Mumbai, and Bangalore.
“The decline in absorption across key cities is primarily due to the continuing global and domestic uncertainty in the economy, which is a deterrent to corporate expansion plans,” said Anshuman Magazine, chairman and managing director of CBRE in South East Asia.
“For the demand to revive, the economic reforms in India need to be fast-tracked, and the global economy has to show some improvement in growth,” he added.
However, while the relative lack of demand for prime office space in India’s major cities might be bad news for real estate investors, it also opens up potential opportunities for occupiers to agree to good-value rent deals.
CBRE’s Indian Office Market View only examines the demand for Grade A offices in NCR, Mumbai, Bangalore, Chennai, Hyderabad, Pune, and Kolkata, India’s six largest business regions.
Editor’s notes: A recent overview of the office space markets across the major cities in India can be seen here.