Bangalore records highest commercial space renting in 2008:C&W
2009-01-01
The rental market continued to strengthen in the city recording four to nine per cent annual appreciation in the peripheral locations and nearly 18 percent year-on-year growth in the central business districts
Bangalore has recorded the highest total renting of commercial space this year at 10.22 million sqft, according to a survey by a global real estate consultant Cushman and Wakefield.
Bangalore witnessed a fresh supply of 11.2 million sqft this year, of which nearly 10.2 million sqft was absorbed, Cushman and Wakefield said in its report.
Over 50 percent of the space taken up was accounted by pre-lease commitments signed earlier.
The rental market continued to strengthen in the city recording four to nine per cent annual appreciation in the peripheral locations and nearly 18 percent year-on-year growth in the central business districts, the survey said.
The average vacancy in the city was estimated at 16 per cent.
The annual year-end report indicates that the total commercial space absorption of 36.5 million sqft in the country was in the major cities alone, which is an increase of 5.7 per cent from last year's 34.5 million sqft.
Pre-commitments of last year was a major contributor to the absorption accounting for 43 per cent of it.
Over all there was a 34 per cent increase in the total supply in the year 2008 at 59.8 million sqft, compared to a 13 per cent year-on-year growth recorded in 2007, it said.
Mumbai recorded the highest growth in total absorption, while Chennai peripheries recorded over 40 per cent vacancy.
Bangalore and Mumbai were also seen as the only two cities that showed an increase in absorption over last year.
