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Hyderabad office market has shown a drop in absorption by about 50 per cent recording a meagre 5,20,00 sq.ft of space during in the third quarter of 2012.
But Chennai and Mumbai have done much better.
The real estate consultancy company, Cushman & Wakefiled, in its report notes that this was due to a slowdown in global economic conditions that is affecting the uptake of space in the city.
Hyderabad, which is largely driven by IT and ITES sectors, is feeling the impact due to overall cautious approach by prospective customers.
Sanjay Dutt, Executive Managing Director of South Asia, C&W India, in a statement said “India’s office market conditions are favourable for corporate world at this time when there is a sizeable availability of ready or near ready supply.
The double-digit vacancy numbers is helping in keeping prices at stable levels.”
India office market is expected to remain stable in short to medium term and we hope to see absorption of about 28-30 million sq.ft by 2012 end, he said.
The report stated Chennai witnessed highest absorption of 1.32 million sq.ft in Q3 among southern cities followed by Bangalore 1.25 million sq.ft. and Hyderabad 0.50 million sq.ft.
The Chennai office market also witnessed 35 per cent increase in absorption in Q3.
Referring to Mumbai, the consultancy stated Mumbai witnessed highest office space absorption across cities in India during Q3.
The metro absorbed 3.95 million sq.ft, an increase of 50 per cent over same period last year.
>rishikumar.vundi@thehindu.co.in
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