Office Space Absorption Up 11 Percent in Delhi-NCR

NEW DELHI: Office space absorption rose 11 per cent to 1.38 million sq. ft. in Delhi-NCR during the April- June quarter, over the year-ago period, on higher demand from IT/ITeS sector, global property consultant DTZ said.

However, the absorption fell by 18 per cent when compared with the previous quarter.

"Office space in Delhi NCR witnessed total take-up of 1.38 million sq. ft. in Q2, representing a decrease of 18 per cent q-o-q (quarter-on-quarter) but an increase of 11 per cent y-o-y (year-on-year)," DTZ said in its report 'Property Times Delhi NCR Q2 2014'.

DTZ describes take-up as floor space acquired for occupation that includes offices let to an eventual occupier and developments pre-let or sold.

IT/ITES sector was the primary demand driver, accounting for the large majority (81 per cent) of total take-up in Q2, compared to 36 per cent in Q1.

"Delhi-NCR witnessed an increase in demand for space by ITES companies in specialized domains like telecom, aviation and BFSI," DTZ said, adding that the demand is likely to grow in the second half with corporates expected to increase hiring activities given the expectation of an economic revival.

Transactions of more than a lakh sq. ft. accounted for 60 per cent of total absorptions in Q2 against 26 per cent in Q1.