Bandra Kurla Complex

Office space absorption in Mumbai flat in Dec Quarter

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Office space absorption in Mumbai flat in Dec Quarter: CBRE report

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Office space absorption in Mumbai during the fourth quarter (October-December) of 2013 remained stable on a quarter-on-quarter basis, registering around 1.3 million sqft, compared to nearly the same space uptake in the previous quarter, according to CBRE's latest report, India Office Market View Q42013.

Anshuman Magazine, chair-man and managing director, CBRE South Asia, said, "Space uptake in Q4 2013 was similar to that in Q3 2013; it was much lesser compared to the first two quarters of the year. 


Demand for office space remained low during the quarter, as most corporates deferred their expansion plans. The Central Business District of Nariman Point, Fort and Cuffe Parade witnessed low demand, while Bandra Kurla Complex, Kurla (W) and Kalina witnessed closure of few small-to mid-sized transactions. 

However, the city's peripheral markets continued to remain the most preferred location of corporate occupiers. Thane and Navi Mumbai continued to see strong demand from clients looking for cost-effective office space options."

Mumbai's office space addition in Q42013 stood at around 900,000 sq ft, taking the city's total supply for the year ended December 2013 up to nearly 8.4 million sqft.

Going forward, demand is likely to be concentrated mostly in peripheral markets, owing to abundant availability of cost-effective, Grade A office space options.

Financial institutions and pharmaceutical firms are likely to drive office space demand in the near term.


Source: Financial Express

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