Delhi/NCR is one of the most important markets when it comes to office spaces and other types of commercial real estate. However, according to a report by Cushman & Wakefield, the office absorption in the market has come down by 57% in the first quarter of 2015. the corporates. Experts suggest that this decline has been due to the delay in decision making by
But since the demand is still strong, it seems like that the office absorption is going to get a push in the north direction in the coming quarters. Except for the market of NCR, the office space absorption in other cities like Bengaluru, Chennai and Hyderabad has seen an upward trend of up to 35 percent. The highest demand has come from the IT/ITES sector. Over the last one year, Bengaluru has seen the highest increase from merely 5 lac sq ft to 3.2 million sq ft. Many of the companies are planning relocation around the prime areas of the city which shows that the demand is going to stay strong. Net absorption refers to the new additions to the office spaces and expansions over a certain period of time but it does not include lease renewals. Seeing the trend and the needs for office spaces, the net absorption of office spaces would increase up to 15 percent by the end of 2015.