Mumbai sees highest office space absorption this year
Jul 16, 2013
Source : The Times of India

 

MUMBAI: About 2.4 million sq ft (msf) of office space was absorbed in Mumbai in the first half (H1), (January-June), the highest across India, according to a new data released by global property consultant Cushman & Wakefield (C&W) on Monday. But this absorption was still 10% less compared to the first half of 2012.

The financial capital witnessed a net absorption of 1.62 msf, an increase of 16% from the same quarter last year and twice the previous quarter.

Office markets in India on the other hand, registered a downward trend in absorption in the first half of the year, said the report. The total net absorption across top eight cities in H1 2013 was 10.9 msf, which denoted a 15% decline compared to the same period last year.

In Mumbai, supply during H1 2013 witnessed a decline of 7% compared to the H1 2012. “However, supply during the quarter stood at 2.2 msf, a 46% increase compared to the previous quarter, as the city witnessed fresh infusion of SEZ supply in Andheri and Thane-Belapur Road. The high supply resulted in Grade-A vacancy to increase to 22.1%,” the data stated.

The only locations to record some changes in rentals were Powai, where rentals appreciated by 6% due to low availabilities, and Worli, which registered a decline by 4% with landlords reducing rentals to induce tenants. “With quality developments available at attractive pricing, investor interests in commercial office developments have increased with a few significant deals in the pipeline,” the report said.

According to C&W, slower economic growth led to the decline in expansion by companies as cautious sentiments continued since the beginning of the year. While skepticism was very apparent in the first quarter of the year, the second quarter saw a marked improvement in total office space absorption.

During H1 2013, Bangalore and Pune followed Mumbai at 1.8 msf and 1.7 msf, respectively. Though Bangalore saw a decline of 22% in net absorption compared to the previous year, it witnessed a seven-fold increase in absorption in Q2 2013 compared to the last quarter. Chennai and Pune recorded positive growth in net absorption in H1 2013 by 6% and 37%, respectively.

Kolkata was down by 52%, while NCR declined by 42%, followed by Ahmedabad at 21%—registering the highest decline in absorption at 0.49 msf, 1.42 msf and 0.27 msf, respectively.

Latest Realty News

Capital values rise along the Borivali-Goregaon West belt
Jul 15, 2013
MUMBAI: The 10-kms stretch, extending from Borivali west to Goregaon west, is high on the list of buyers looking for capital appreciation. With Kandivali west falling along the corridor, the area has 13 per cent of the total new properties (as per data with MagicBricks.com) being constructed there. Out of these, Goregaon west and Borivali west would be delivering 50 per cent and 20 per cent of the supply respectively, most of which is scheduled for possession in the coming three years.
Prime land deals expected this year despite slowdown
Jul 15, 2013
MUMBAI: The sluggish economic climate notwithstanding, big-ticket land sales are expected to see a spurt this year as some aggressive developers look to buy plots in anticipation of a revival of the property market.
ASK Property to invest up to Rs 500 crore by fiscal-end
Jul 15, 2013
MUMBAI: Private equity firm ASK Property Investment Advisors plans to invest up to Rs 500 crore in mid-income residential projects by this fiscal end, a top company official said.
Capital values rise along the Borivali-Goregaon West belt
Jul 15, 2013
MUMBAI: The 10-kms stretch, extending from Borivali west to Goregaon west, is high on the list of buyers looking for capital appreciation. With Kandivali west falling along the corridor, the area has 13 per cent of the total new properties (as per data with MagicBricks.com) being constructed there. Out of these, Goregaon west and Borivali west would be delivering 50 per cent and 20 per cent of the supply respectively, most of which is scheduled for possession in the coming three years.
Property values rise; rentals drop in Hinjewadi
Jul 15, 2013
PUNE: Hinjewadi is an excellent example of how the development of an area as a commercial destination, leads to the growth in the residential real estate market too. Until a few years ago, Hinjewadi was seen as a rural area. However, the establishment of the Rajiv Gandhi Infotech Park changed the picture in a radical way. Today, there are more than 20 major IT industries in Hinjewadi, which are fuelling the residential demand in and around the area. The increasing demand for housing has led Hi
ASK Property to invest up to Rs 500 crore by fiscal-end
Jul 14, 2013
MUMBAI: Private equity firm ASK Property Investment Advisors plans to invest up to Rs 500 crore in mid-income residential projects by this fiscal end, a top company official said.
Only 903 housing societies in Mumbai apply for land transfer
Jul 11, 2013
MUMBAI: The deemed conveyance campaign, from last December to June 30, has received a very poor response.
Tapering growth lowers luxury home sales
Jul 11, 2013
MUMBAI: The richer middle class too is feeling the impact of the slowdown and isn’t buying homes like before, badly impacting sales of luxury homes.
High-end realty deal: A shanty in Dharavi fetching a price of over Rs 1 crore
Jul 11, 2013
MUMBAI: A shanty in Dharavi is fetching a price of over Rs 1 crore, and real estate prices in Asia's second-largest slum cluster are beating those in posh central Mumbai areas like Lower Parel.
Key cities across India witness supply of over 20 mn sqft of office space in H1, 2013
Jul 10, 2013
MUMBAI: The prime office space segment across key cities in India witnessed a supply infusion of more than 20 million sqft in the first six months of 2013.

Latest Realty News Of State

Realty Talk's