New Delhi: In the second quarter, the availability of office space has experienced a significant decline, dropping by more than 75%. This downturn represents a considerable decrease compared to the preceding quarter across the country's major cities. Investigations suggest that substantial vacancies in completed buildings, coupled with inadequate commitments in projects under construction, are the primary factors contributing to the reduced supply.
During the second quarter, the acquisition of office space totaled less than 3 million square feet. This figure indicates a notable decrease of 75% compared to the previous quarter's supply of 10 million square feet to the real estate sector.
The second quarter of the year saw the lowest provision of office spaces in several quarters. The report offers an overview of office space activities in prominent cities.
Bangalore experienced a particularly sharp decline, with the provision reducing to 3.5 lakh square feet, in contrast to the 35.83 lakh square feet recorded in the preceding quarter. Delhi-NCR accounted for only 12% in this context. The decrease amounted to 3.24 lakh square feet, compared to 15.53 lakh square feet in the prior period.
Over the past year, major corporate entities have shifted their focus towards relocation strategies and optimizing the utilization of their existing real estate holdings. This trend is anticipated to persist throughout the mid-two quarters.
The economic slowdown and the Reserve Bank of India's (RBI) new bank scheme are exacerbating the challenges faced by developers, contributing to the scarcity of office space across the nation.