With slowdown signs looming large over the Indian economy, the effect on the job market and its subsequent effect on office space is getting visible now. Sales of office space – often considered an indication of a country’s economic health – fell by about 35% month-on- month and 25% year-on-year, said global real estate consultants CBRE and DTZ. According to industry experts, the demand for office space is expected to stay low.
Sales declined to five million sq ft during July-September from 8 million sq ft in the second quarter.
Industry experts say supply pressure too is expected to continue in the next quarter, which will cause commercial space rentals to stagnate.
“The slowdown is indicative of the global sentiment affecting the Indian office property market,” said Anshuman Magazine, Chairman & Managing Director, CB Richards Ellis South Asia. “It is also indicative of the continuing volatility in the financial markets within India.”
