Nearly 10.4 million sq ft office space absorbed during Apr-June:Research

A report said,nearly 10.4 million sq ft of office space was absorbed in the country during April-June, backed by demand from sectors like IT, BFSI and manufacturing .

According to the report by Collier International, nearly 10.4 million sq ft of office space was absorbed during second quarter of 2016, registering 18 per cent increase from January-March period.

Technology, banking, financial services and insurance (BFSI) and manufacturing firms dominated expansion activities across all cities.

According to the report, Bengaluru remained the top contributor with 30 per cent share of the absorption pie, followed by NCR (21 per cent), Hyderabad (20 per cent), Chennai (15 per cent), Mumbai (8 per cent), Pune (5 per cent) and Kolkata (1 per cent). "The demand was well supplemented by the new supply and existing vacant stock, but vacancy levels have gone down in most of the cities due to limited addition of new supply. "This quarter about 7 million sq ft was added to the total Grade A office inventory. Also, rentals for Grade A buildings remained stable in majority of micro markets," Report said.

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