Office space absorption climbed by 36 per cent in eight predominant cities to 24.23 million sq feet during the first nine months of this year as corporates leased extra space for expanding their operations; a report stated. Ahmedabad commercial property witnessed the optimum rise in office space absorption as the city said greater than three-fold leap in leasing at 11,39,100 sq ft of area throughout January-September 2014. It was 3,56,590 sq feet in the same period in 2013, as per the property advisor Cushman & Wakefield.
"Total net absorption of office space has been recorded at about 24 million square feet between January-September in 2014 as against the 17.7 million sq ft at the same time last year." C&W mentioned in the declaration.
In the course of this year until September, the consultant noticed, Ahmedabad, Bengaluru, and Hyderabad witnessed the highest increase in net absorption.
Bangalore saw a hike of 92 per cent in net absorption at 6.2 million sq feet, at the same time Hyderabad noticed an upward push of 84 per cent at 3.8 million sq feet.
Office space absorption in Delhi-NCR went up by 36 per cent at 4.54 million sq feet for the period of January-September 2014 compared with the last year phase. Chennai and Mumbai saw an upward thrust of 45 per cent and 1one per cent, respectively.
Nevertheless, Pune and Kolkata commercial market saw a decline of 26 per cent and 19 per cent in office space leasing during the period under review.
Commenting on the record, C&W executive managing director South Asia Sanjay Dutt said: "The office markets have seen a positive trend as the monetary development extended from all-time lows, and business assurance reinforced. Companies have begun to develop their operations."
He noticed that new leases and growth now constitute 75 per cent of the leasing activity in the country with relocations and consolidations witnessing a decline over last year.
"We will continue to see this positive momentum in the next 2-3 years with net absorption likely to outstrip new supply from the year 2016," Mr. Dutt mentioned.