Global property consulting firms, including DTZ, JLL, Cushman & Wakefield, and CBRE, are releasing opposing analyses regarding the demand for office space in India.
BANGALORE: A recent assessment by CB Richard Ellis, a prominent US-based property consultant, has indicated a 37% year-on-year increase in office space absorption in India, with January 2013 reportedly experiencing heightened demand.
Conversely, a varying report issued by Cushman & Wakefield claims that office space demand has dropped by 37%, a stark counterpoint to the findings of CBRE.
Moreover, the perspectives from Jones Lang Lasalle (JLL) and DTZ India are also misaligned. JLL suggests a moderate demand trend, while DTZ points out a decline in the need for office space.
JLL's report posits that office space demand remains unchanged when compared to the first quarter of 2012, indicating that demand is moderate across many cities. Conversely, DTZ India has noted a 20% decrease in office space absorption, with CEO Anshul Jain emphasizing that this year only 4.8 million square feet of space has been absorbed, down from 6 million square feet in 2012.
Mr. Jain also mentioned a projection for improved absorption levels come the second quarter of 2013.
According to Cushman & Wakefield, 3.6 million square feet of office space was absorbed in the first quarter of 2013, a number that is lower than both DTZ India’s figure of 4.8 million square feet and CBRE’s 6 million square feet of absorption.
Jones Lang Lasalle's head of research in India, Ashutosh Limaye, noted that a more comprehensive quarterly report from JLL will be released next week, hinting that demand for office space is likely to remain stable or modest.
The conflicting reports from these various consultants have left the market in a state of uncertainty, with industry experts grappling to determine whether the office real estate sector is on an upward trajectory or is experiencing decline.