Demand of office space has dropped in Q1 in Mumbai

Q: Hi, Do you know that demand of Office Space has dropped in Q1'2014?

Puneet Laskar,

30th April 2014

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Replies (2)

Pashmina Developers building office apartments.

Ajit Vichare, Thane

2nd May 2014

Comment

Hi everybody,
It is expected that office space in first quarter of 2014 declined by 4-5% to one million sqft compared to 1.05 million sqft in Q4 of 2013.

Lokesh Patwa,

30th April 2014

Comment

Hi Lokesh,
I think this uncertain conditions arising due to upcoming general election and occupiers should remain cautious for that.

Srikumar Nair,

30th April 2014

@sri.
Yes, it may be. As per the reports it is found that the pharmaceutical sector came out as the largest contributor to take-up in Q1 as against the strong BFSI and IT sector in the last qtr.

Lokesh Patwa,

30th April 2014

@Lokesh,
Central Business District of Mumbai where the average rent declined to under Rs. 250/sqft and New CBD also witnessed a decline of 8% in average rental values.

Srikumar Nair,

30th April 2014

Okey,
But the rent will remain constant throughout 2014 because of high vacancy levels in existing stock and huge upcoming supply.

Lokesh Patwa,

30th April 2014

@Lokesh,
Even the retail sector also witnessed dull market activity in Q1 as the most of retailers postponed their spreading plans to the latter half of the year and as a result the vacancy levels in malls increased from 14.3% in Q4 to 16.5% in Q1.

Srikumar Nair,

30th April 2014

@srikumar,
That is why vacancy is largely due to tenants existing underperforming malls located in the east and peripheral location.

Lokesh Patwa,

30th April 2014