NBR Developers
  • more-arrow-down
    • Please wait while loading other cities loading...

Citys office space absorption drops sharply by 22 Percentage

  • No. 1 Property Portal in India
  • Over 25 Lakhs Apartments and More
  • Post Free Residential Properties in India
  • Find Property in Bangalore
  • Buy/Sell/Rent Apartments in India
  • Search Latest Residential Property in India
  • Get Free Alerts on Property Requirements
  • Find Agents/Buyers for your Property
The office space absorption in Bangalore during H1 2013 at 1.6 million square feet (msf) was a drop of around 22 per cent over H1 2012. But, it was nearly seven times than the previous quarter due to certain pre-commitments getting absorbed (around 50 per cent of the net absorption) and expansion by certain companies in the manufacturing and online retail categories. The market exhibited signs of healthy demand with pre-commitments adding up to approximately 1.9 msf unlike previous quarter where there were none. According to real estate consultants, Cushman & Wakefield, Outer Ring Road being a preferred location with its proximity to residential catchments and good connectivity to central and suburban regions witnessed about 74 per cent of the total pre-commitments.
The city witnessed an addition of 1.6 msf of fresh office space in Q2, which remained in a similar range as of the first quarter. Outer Ring Road continuing to be a favoured workplace location also saw 94 per cent of the total supply. The first half of the year again saw a drop of approximately 34 per cent in supply compared to the same period last year. The overall vacancy was recorded at 14.5 per cent, a slight dip of 0.2 percentage point from the last quarter. Rentals across the markets remained in similar ranges with the exception of suburban micro-market, which experienced a rise in rentals in the wake of a healthy demand for second generation spaces by IT-BPM companies. Observing the quantum of RFPs getting floated in the market, leasing activity is expected to see an uptrend going forward. Further, the rentals are expected to hold on to their current levels in short to midterm.
This decline in Bangalore was in line with trend seen across India, where the total net absorption across top eight cities in H1 2013 was noted at 10.9 million square feet which denoted a decline of 15 per cent compared to the same period last year. Slower economic growth led to the decline in expansion by companies as cautious sentiments continued since the beginning of the year. While the skepticism was very apparent in the first quarter of the year, the second quarter saw a marked improvement in the total office space absorption. Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, said, "The office real estate market has been able to keep afloat in the midst of the negative market sentiments, which include poor GDP growth projections, depreciating value of Rupee against dollar, political volatility and continued unrest in the global economic conditions. Even while absorption registered a fall of 15 per cent year on year, the second quarter of 2013 has outperformed on both accounts of year- on - year as well as quarter -on - quarter, indicating an existing strain of growth that is still visible in the corporate world. Even though corporates have been cautious in their expansion, the trend has been positive, albeit slow. By the end of the year ,,ffice space absorption is expected to be at approximately 30 msf with markets such as Bangalore Pune and Mumbai leading the trend."
Source: Business Standard

Property Listings

Apartments, Flats and Property for Sale in Bangalore

Jun 15, 2018
Jun 12, 2018
NR Pearl is one of the residential projects of NR Builders, located in Bangalore. This project offers spacious 2BHK and 3BHK apartments with..
Jun 12, 2018
NAVA VEDANTHA APARTMENT • OC and CC available, BBMP Approved. • open spaces Garden • Total Flats:80(2Bhk-60,3Bhk-20)..
Jun 07, 2018
PRINCETON luxurious contemporary apartments by Prospect Group featuring elegant living spaces and exceptional detailing, these cosmopolitan..
Jun 07, 2018
PRINCETON luxurious contemporary apartments by Prospect Group featuring elegant living spaces and exceptional detailing, these cosmopolitan..
Jun 04, 2018
Located in one of the most dynamic regions in Amruthalli, North of Bangalore, Cocoon is a 3 storey masterpiece for a unique residential experience..
Jun 09, 2017
BREN brings to you unparalleled comfort combined with a lifestyle that embraces modern trends while providing a quality experience. Total Plot..
Jun 09, 2017
Finding a new and never-before living experience has never been so easy. Sri Guru BR Elite presents an expansive array of living options at one of..
Jun 08, 2017
Bren Woods is located in Bangalore and comprises of thoughtfully built Residential Apartments. The project is located at a prime address in the..
Jun 06, 2017
Shriram Summitt, set on 15 acres, offers 1, 2 & 3 BHK units in various sizes. 1 BHK units range from 720 to 780 sq.ft, 2 BHK units from..

Apartments, Flats and Property for Rent in Bangalore

Jun 13, 2018
Spacious Flat for Rent in Frazer Town (Near G.K Vale) 2 BHK 2nd Floor, with Car parking, Lift, power Back up, 24hrs water , good Location,..
Jun 12, 2018
Spacious 2 BHK Flat for Rent in Frazer Town (Near G..K Vale) with car parking ,Lift, power Back up, 24hrs water Good Location very close to the..
Jun 04, 2018
Spacious 3 BHK Flat for Rent in OMBR layout 1800 sq feet , with Car parking, Lift, power Back up, 24hrs water Good Location Very close to the..
Jun 02, 2018
Flat for Rent in Jeevanahalli (Cox Town) 2 BHK with car parking ,Lift, power Back up, 24hrs water Good Location very close to the Schools,..
May 16, 2017
Spread over 6.9 acres of land and comprising of 3 Blocks, SOBHA CLASSIC is strategically located off Sarjapur Road, Bangalore and offers close..
May 15, 2017
Flat for rent in Haralur Road near Kudlu(AECS Layout). East facing 2BHK (1235sq.ft) flat for rent. It is situated on the main road(Haralur Road)..
Apr 23, 2017
As my office is far from Flat, planning to..
Apr 21, 2017
New Era Luxury Hostels for Girls , accommodation for every budget • Brand New building • Spacious and well ventilated..
Apr 19, 2017
2BHK apt for rent, ground floor, car parking, power backup, arkere BPL bus stop, next to Mitra Academy school, Bannerghatta main road, available..
Mar 31, 2017
LEASE OR RENT Near Manyath tech park brand new 2b/r multistory apartment with swimming pool, gym party hall, power backup, car..