Bangalore is expected to see the second-highest office space absorption in Asia Pacific (Apac) region for 2014 after Tokyo, according to real estate services firm Cushman & Wakefield. According to the report, the southern metropolis is set to absorb 5.6 million square feet (msf) office space, a growth of 16% over the previous year, with most of the demand coming from the expansion of the IT, ITeS industry.
The National Capital Region, which will see the sixth-highest net absorption of office space in the region, will record net absorption of 3.6 msf, a rise of 10% over 2013. Pune is third city in the list at 9th in the region with the absorption being expected at 3 msf, followed by Hyderabad at 11th with 2.5 msf, Chennai at 15th with expected absorption of 1.2 msf and Mumbai at 18th with absorption of 0.5 msf.
According to the report, the leading markets of India recorded a drop of approximately 7% in total net absorption in office space between 2012 and 2013.
“The oversupply situation will ease from 2014 onwards as economic conditions improve domestically and globally. IT/ITeS has been greatly affected by the global economic scenario impacting the growth of the sector in India,” said Sanjay Dutt, executive managing director-south Asia at Cushman and Wakefield.
Tokyo is forecasted to see the highest office absorption among the 30 cities in the region with the office space absorption expected to be at 7.6 msf.