| The demand for office spaces across the country | | | | Demand for office space in Delhi NCR in the third |
| was up by 19 per cent in the third quarter (July-Sept, | | | | quarter was recorder at 656,300 sq.ft. with no |
| 2009) over the previous one. Bangalore witnessed the | | | | pre-commitments. A 30 per cent drop in demand from |
| highest demand in the third quarter with 2.3 million sq.ft. | | | | the previous quarter absorption was driven by |
| followed by Mumbai at 1.2 million sq. ft. However, the | | | | commercial office segments (63 per cent) |
| gap between supply and demand increased to over | | | | predominantly in Gurgaon and Delhi and in the IT / ITEs |
| 130 per cent (from 50 per cent) in the last quarter, | | | | segment including SEZ space. Gurgaon recorded |
| increasing the average vacancy across major cities in | | | | 243,800 sq.ft. Space take-up. Most of the micro |
| India to 17 per cent from the previous quarter’s | | | | markets continued to witness correction though rental |
| 13-18 per cent, according to the third quarter office | | | | values across south micro market and Noida (IT/SEZ) |
| Market beat. | | | | stabilized having achieved sustainable levels with no |
| Property in Delhi NCR declined over the previous | | | | new supply entering the market. |
| quarter due to subdued interest from the corporate | | | | |
| sector in anticipation of further decline in values along | | | | |
| with shelving of their expansion plans. Additionally, high | | | | Property in Pune |
| availability of ready to move in options has resulted in | | | | The total absorption in Pune was recorded at |
| no pre-commitments for the future supply, impacting | | | | approximately 930,700 sq. ft. – 29 per cent higher |
| the demand for the quarter. | | | | as compared to the second quarter 2009, Majority of |
| The total fresh supply registered in Q3 2009 was | | | | the fresh absorption was concentrated in suburban |
| approximately 15.9 million sq.ft. Mumbai, leading the | | | | locations such as Magarpatta, Viman Nagar, Yerwada |
| supply scene, saw an infusion of 3.73 million fresh | | | | and Kharadi. |
| supply followed by Delhi NCR (2.26 million sq.ft.) | | | | Property in Bangalore |
| Kolkata, traditionally a low supply market witnessed | | | | |
| infusion of 1.7 million sq. ft. while Ahmedabad witnessed | | | | Absorption in Bangalore was higher in the third quarter, |
| no supply in the quarter. | | | | accruing to a total of 1.56 million sq.ft. in comparison to |
| The office market sector in India is on a gradual | | | | the second quarter. Peripheral locations of Whitefield |
| improvement curve with demand just about beginning | | | | and Outer Ring Road accounted for cumulative |
| to pick up. However, vacancy levels have not seen | | | | absorption of 898, 970 sq.ft. Demand for this quarter |
| much respite since supply also increased significantly | | | | was the highest in the year at 2.37 million sq.ft. an |
| and simultaneously in anticipation of this demand. The | | | | increase of 80 per cent from 2Q, 2009 with pre |
| third quarter saw some surprise with Mumbai | | | | commitments amounting to 1.16 million sq.ft. |
| witnessing significantly high supply as well as | | | | Property in Chennai |
| absorption. Pre commitments were recorded at an all | | | | In Chennai fresh pre-commitments for the quarter |
| time low owing to the increased vacancy levels with | | | | amounted to approximately 870,000 sq.ft and the total |
| the exception of Bangalore and Chennai. | | | | demand for the quarter stood at approximately |
| Property in Mumbai | | | | 980,000 sq.ft. – almost at par with the previous |
| | | | quarter. |
| In Mumbai, demand for commercial office space in Q3 | | | | Property in Kolkata |
| 2009 improved significantly as compared to previous | | | | Demand for office space in Kolkata was recorded at |
| quarters and was recorded at approximately 1.21 million | | | | approximately 229,000 sq.ft. in 3Q, 2009. Total |
| sq.ft. This steep growth in demand can be attributed to | | | | absorption was approximately 261,000 sq.ft. mostly |
| the improving economic environment and growing | | | | concentrated in the peripheral locations. Salt Lake |
| belief amongst end users that office rental values in | | | | dominated the absorption trends for the quarter |
| Mumbai have largely bottomed out. As a result, many | | | | accounting for almost 67 per cent of the total |
| companies, which had earlier withheld their real estate | | | | absorptions followed by Rajarhat (15 cent) and |
| requirements, have now begun to execute their | | | | Dalhousie (12 per cent) mainly due to the affordability |
| absorption of office space in Q3 2009 was recorded | | | | of rentals in these locations. |
| as 2.76 million sq.ft. | | | | Want to know More information about real estate india |
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