2.4 million sq ft office space absorbed in Mumbai in first half of 2013

Written By Unknown on Senin, 15 Juli 2013 | 22.23

MUMBAI: About 2.4 million sq ft of office space was absorbed in Mumbai in the first half of 2013, the highest across India, according to new data released by global property consultant, Cushman & Wakefield on Monday. However, this was still 10% less compared to the first half of 2012.

The city witnessed a net absorption of 1.62 million sq ft and increase of 16% from the same quarter last year and twice the previous quarter. Office markets in India registered a downward trend in absorption in the first half of the year (Jan - June 2013), said the Cushman & Wakefield report. The total net absorption across top eight cities in H1 2013 was at 10.9 million square feet which denoted a decline of 15% 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 an increase of 46% compared to the previous quarter concentrated in Andheri and Thane-Belapur Road where the city witnessed a fresh infusion of SEZ supply. The high supply resulted in Grade A vacancy to increase to 22.1%," it said.

The only locations to record some changes in rentals was 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," it said.


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