Office space absorption fell by 32 per cent in the country’s seven major cities at 4.1 million sq ft during January-March period as compared with the year-ago period on global economic slowdown and fall in India’s GDP growth,property consultant CBRE said today.
“The year 2012 has begun on a sluggish mode with only 4.1 million sq ft of prime office space being absorbed across key markets,” CBRE said in a statement.
In the year-ago period,the absorption stood at 6 million sq ft,according to CBRE South Asia’s latest report ‘India Office Market View Q1 2012’.
“There has been a decline in absorption figures when compared to the same time period last year. This is a clear indication of Global Economic slowdown and a decline in India’s GDP growth,” CBRE South Asia Chairman and Managing Director Anshuman Magazine said.
The drop in office space absorption could also mean that there was a reduction in employment in the services industry,he added.
The NCR (National Capital Region),Mumbai,Chennai and Bangalore were the leading cities,accounting for more than 70 per cent of the entire space getting absorbed in the country.
The supply continued to overtake demand in the first quarter of 2012,with almost 5.9 million sq ft of office space being added across the leading cities of the country.
The new supply was largely concentrated in NCR,Bangalore,Mumbai and Chennai,comprising almost 90 per cent of the entire quantum added in the present quarter.