Office space absorption rose 10% in 2014, says report

Mumbai

Absorption of office space increased by nearly 10 per cent in 2014 to over 33 million square feet compared to the previous year, indicating optimism in the commercial real estate market which is likely to continue in 2015 as well, according to a report.

The report by property consultant CBRE said “enhanced” levels of activity in corporate real estate transactions have led to a total office space take-up of more than 33 million square feet (sq ft) during 2014.

The demand for commercial office space was sustained throughout the year, registering an year-on-year growth of 10 per cent over 2013, the report said.

This activity was led for the most part by Bangalore (37 per cent) and the National Capital Region (24 per cent).

During October-December 2014, total corporate space take-up was more than 9 million sq ft — the highest quarterly levels over the past three years.

“Such transaction levels echoed the overall sense of optimism that prevailed in the Indian commercial real estate market in 2014,” said CBRE South Asia Chairman and Managing Director Anshuman Magazine.

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