News: Covid-19 adversely aects oice space, residential launches in top Indian cities-06-08-2020

https://economictimes.indiatimes.com/wealth/real-estate/covid-19-adversely-affects-office-space-residential-launches-in-top-indian-cities/articleshow/77386369.cms

Synopsis

The total ofce space absorption for the half-year ended June added up to 13.6m sft for the ve cities with positive traction in the rst quarter softening the overall half-yearly decline to 31%.

HYDERABAD: The top ve Indian cities of Bengaluru, Mumbai, Chennai, Hyderabad, and Kolkata have suered a steep fall of 54% in oice space absorption and a 71% decline in new residential launches during the second quarter of the year ended June thanks to Covid-19 outbreak. The ve major cities saw absorption of around 4.42 square feet of oice during Q2, says the quarterly report of global real estate consultant Vestian Global. Bengaluru led the way with a 45% share of the total oice space absorption in these ve cities, followed by Mumbai at 30%, while Hyderabad accounted for a 12% share. Chennai and Kolkata accounted for 10% and 2% share respectively, of the total absorption during the quarter under review. The total oice space absorption for the half-year ended June added up to 13.6m sft for the ve cities with positive traction in the rst quarter softening the overall half-yearly decline to 31%. Vestian said the new oice space completions for Q2 were recorded at 6.84m sft in the ve cities, translating into a signicant dip of 41% as compared with the new supply in the same quarter a year ago. For the rst half of the year, the total supply stood at 14.34m sft across the ve cities, a decline of 32% year-on-year. Hyderabad suered the most in oice space absorption during June quarter at 0.55m sft representing a fall of 77%, while for the half-year it stood at 2.19m sft, translating into a fall of 52%. The oice space supply during June quarter stood at 3.1m sft, down by 52%, while it amounted to 4.1m sft during the rst half of the year, a fall of 51%.