Bangalore Office Market for July 2012

Although Bangalore retained top slot for highest office space with 12 mn.sq.ft. transacted during FY 2012;  signals a slowdown looming as absorption depreciated by 25% in Q4 FY 2012

- Even though Bangalore retained the top slot for the highest office space absorption in the country in FY 2012, the uncertainty prevailing over the growth and expansion plans of global Corporates has led the office market to witness a slowdown in absorption

- The city's office market clocked absorption of around 12 mn.sq.ft. during FY 2012, translating into an increase of 10% over the absorption witnessed in FY 2011

- With an inventory of around 90mn.sq.ft. of office space currently operational, Bangalore remains one of the most preferred office space destinations in the country

- The slowdown has been evident since the second half of FY 2012 where a decline of 11% was witnessed in the office space absorbed in Q3 FY 2012 over the previous quarter, which further depreciated by 25% in Q4 FY 2012 over the absorption witnessed in Q3 FY 2012

- The decline in absorption persisted in the new financial year as well and the first quarter of FY 2013 witnessed a drop of 67% in office space absorption, as compared to the absorption in the corresponding period of Q1 FY 2012

- The IT/ ITeS industry which has been responsible for the rise in Bangalore's office market remained the key demand driver for office space, even in the face of the prevailing economic scenario, and was responsible for occupying the greater part of the absorption pie

- Going forward, Bangalore office market will witness cautious delivery of projects in FY 2013 on account of the present economic situation. 

Some of the biggest deals during this period were: