New Delhi: Net absorption of office space fell by 25 percent at 23 million sq ft during this calendar year in the country's top eight cities as corporates were cautious about expansion considering weak economic conditions.
These eight cities are NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune, Kolkata and Ahmedabad.
"Total net office space absorption recorded a 25 percent decline in across top eight cities over last year. Total net absorption for 2013 was recorded at 23 million square feet," property consultant Cushman & Wakefield said in a statement.
Most cities have witnessed a decline in net absorption in the range of 20-40 percent during 2013, except Pune where incremental new space take-up increased by 15 percent.
Mumbai registered the highest quantum of net office space absorption at 4.7 million sq ft, followed by Bengaluru with office space absorption of about 4.6 million sq ft in 2013.
The net absorption recorded decline, mostly on account of companies focusing on relocation, expansion and consolidation in order to rationalise costs as well as create greater value for the company operations within the country, C&W said.
Commenting on the report, C&W Executive Managing Director South Asia Sanjay Dutt said: "Caution prevailed across corporations due to the slower growth of the Indian economy".
"Also at the political arena, this has been a year of realignments and retrospect. Given which Indian and global corporate had decided to remain invested but contained their expansion plans".
With the political dust settling by the mid of next year post general elections, Dutt said net absorption is expected to start picking up pace.
"With pricing remaining largely stable, next year will be an occupiers' market offering better quality office space for competitive pricing," he added.
