Mumbai Q2 Workplace Area Absorption Falls to Lowest Level Since 2009: DTZ
MUMBAI: Mumbai's workplace area transactions in April-June touched its lowest quarterly absorption level since initial quarter of 2009.
The total workplace area take up slipped 63% from last quarter to mere 0.42 million sq ft within the second quarter, said a report from property consultancy firm DTZ.
During the quarter, the country's monetary capital witnessed restrained new provider of 0.48 million sq ft workplace area, with most of the focused within the off central business district locations.
According to DTZ, developers have steer clear off any new project launches in Mumbai and are that specialize in leasing their existing workplace area inventory. This is often preventing any major drop in rental values.
Overall rentals have remained stable across all micro markets in Mumbai. Some developers have rescheduled their comes so as to avoid putting downward pressure on rentals, the report said.
"The moderation in take-up may be attributed to the slowdown within the domestic economy. Moreover, ongoing challenges within the Eurozone have heightened considerations of a worldwide economic slowdown. IT/ITES and BFSI sectors have consequently adopted a cautious approach towards enlargement and this resulted in below expected take-up in Q2," DTZ said.
The property consultant expects workplace area take-up possible to stay subdued within the short term and rental values across most micro markets to be harassed. Its forecast rents of grade A buildings to stay flat for the rest of the year from here on.
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