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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