LPCurry's Blog: Office Space Rentals Up 15%, Occupancy Rise 23% In 2010

After several quarters of tepid growth, the office space absorption has grown 23 per cent in 2010, while the rentals in the micro markets grew by 15 per cent as the overall demand for commercial space increased due to better macro economic indicators. The total commercial space absorption grew to 32.65 million sq ft from the last year’s absorption of 27 million sq ft in the major Indian cities, according to the annual report by real estate consultants, Cushman & Wakefield. Most micro markets in the country witnessed about 5 –15 per cent rental appreciation over last year, but currently rentals have stabilized across locations. However, select locations in Hyderabad and national capital region (NCR) have seen rental growing at a slower pace. In Mumbai, the moderation in demand led to stabilization in rental values which otherwise witnessed an annual appreciation of 5-10 per cent. Rentals in Bangalore recorded an annual appreciation in the range of 5-16 per cent, while the NCR rentals grew in the range of just 2 – 10 per cent over the year across most of the micro markets.
20 Dec 2010 Financial Chronicle