Home | Recommend Us | Contact us | Make NK your default homepage
TOP NEWS
BREAKING NEWS
HOME | ASTROLOGY | CHINESE ASTROLOGY | NUMEROLOGY | RECIPES | SELF HELP | PHOTO GALLERY | YOGA | TRAVEL | EDUCATION | PINCODES | BABY NAMES
NEWS CHANNELS
  • Kerala News
  • India News
  • World News
  • Business India
  • Sports News
  • Cricket News
  • Travel News
  • Health News
  • Technology
  • Literature News
  • Education News
  • NRI News
  • Spec. Features
Entertainment News
  • Bollywood News
  • Hollywood News
  • Malayalam Film
  • Tamil Film
  • Kannada Film
  • Telugu Film
Regional News
  • Andhra Pradesh
  • Gujarat News
  • Karnataka News
  • Maharashtra
  • Orissa News
  • Punjab News
  • Rajasthan News
  • Tamil Nadu
  • West Bengal
  • More India News
Best Of NewKerala

  • Festivals of India
  • Self Help
  • India Travel Maps
  • Temples of India
  • Kerala Info
  • Indian Dance Forms
  • Music of India
  • Bollywood Photos
  • Make Up Lessons
  • Weight Loss Tips
  • Top Destinations
  • World Travelogues

Home > News > business-india-news

Demand for office space slows down across India

New Delhi, Oct 20: After hitting the housing sector, the global meltdown is impacting office space absorption in India, with all major cities marking a slowdown in the office rental market, according to a report released here Monday.

The India Office Market View report released by CB Richard Ellis, a global realty consultancy, said seven major cities showed a marked slowdown in demand during the quarter ending Sep 30, and office space leasing had moderated in the first two quarters of the year.

"Many corporate occupiers, especially in the IT and ITeS sectors have postponed or curtailed their expansion plans," the report said.

"Together with this, the fund availability for the sector, which was already constrained due to the inflation control measures of Reserve Bank of India, will be further curtailed by the recent financial crisis in the US and its ripple effect on rest of the world," it added.

Anshuman Magazine, chairman and managing director of CB Richard Ellis' South Asian operations, said: "The global economic slowdown has started to show early signs of impact on the offices market.

"The third quarter of 2008 has seen some decline in the office space take up across the country. Going forward this is expected to keep office rentals under check," Magazine said.

"Another trend that came to the forefront was the increased flexibility on the part of the developers and landlords to negotiate on the quoted commercial terms - a reflection of the pressure being felt in the market," the report said.

Going by region, rentals in the National Capital Region are likely to remain stagnant for the next few quarters. On the other hand, the demand for corporate office space will not be affected in the next few quarters, especially in the micro-market of New Delhi.

In Mumbai also, office occupancy was low and rentals and capital values across most micro-markets will see a further correction. This can turn out to be more severe by mid 2009.

The trend has hit the IT city of Bangalore as economic slowdown in the global markets has clearly left a mark on the Bangalore office sector.

Similarly, the occupancy of office space in Chennai, Hyderabad, Pune and Kolkata was also substantially lower than last year.

Considering the current demand scenario and with developers postponing and further phasing out the supply, rentals are not expected to move upwards for the next few quarters.

In response to the sluggish market conditions, planned and under-construction supply is being delayed.

"Overall the office market space in the key cities in India has witnessed a slowdown, which is expected to continue over the next few quarters. This is reflective of the global economic conditions affecting commercial real estate in India," the report said.

--IANS

Post your comment

Read other business-india-news stories

Visit Home Page for fresh content


Rating: This article has not been rated yet.

Rate:
 


 

Latest News Headlines:

Jackson's Moonwalk Glove Sells For USD 350,000
Miley Cyrus' Driver Had Cardiac Arrest - Report
Bon Jovi And Sgwen Tefani Suing Bars
Noel Gallagher Attacker Pleads Guilty
Berry Gordy Honoured At Motown 50th Anniversary
Kelly Carlson's Fat Trauma
Joe Francis Too Sick For Court Appearance
John Travolta Thrilled With Street Honour
Courteney Cox Puts Cougar Town On Hold
Nicole Kidman And Kate Hudson Honour Everyday Heroes
Jackson's Moonwalk Glove For Sale
Sore Jordin Sparks Struggling To Enjoy New Number One
Stars Come Out For The Deftones
Family Issue Prompts The Cranberries To Cancel Concert
Fight Promoters Sue DMX
Judge Dismisses Assault Charges Against John Rich
John Travolta'S Family Day Out To Raise Charity Cash
Cole Slams Marriage Split Rumours
West Wing Star To Support Lopez In Dog Lawsuit
Second Autopsy Requested In Jewell Death
Lindsay Lohan Slammed By Store Over Freebie Demands
Shilpa Shetty ties the knot with Raj Kundra
7 killed, 60 injured in Assam twin blast
2 CRPF killed in Jharkhand mine blast
Gavaskar, not Sachin Tendulkar, a true Maharashtrian: Sena
Jayawardena replaces Sangakkara as No. 1 Test batsman
Sachin Tendulkar plays for BCCI, not India: Sena
Manmohan Singh arrives in Washington
'Playing Paa to Big B is difficult' : Abhishek Bachchan
'Man-woman relationship is too complicated' : Mahesh Bhatt
'70pc of my films is reality' : Madhur Bhandarkar
Jail came at the right time: Arya Babbar
'I' m only concentrating on films' : Mukesh Tyagi
'I am working on my Hindi' : Jacqueline Fernandez
'I share same energy with Ranbir': Katrina Kaif
'Don't call me 90-yr-old' : Manna Dey
'Kiss is lucky for my films': Emraan Hashmi
Manufacturing sector showing stronger signs of recovery due to stimulus: CII
Iran's Revolutionary Guards start military manoeuvres
New York man kills fellow commuter over train seat

  Home | Recommend Us | Contact us | Make NK your default homepage
  © 2001-2008 NEWKERALA.COM. All Rights Reserved.