Global property consultants like DTZ, JLL, Cushman & Wakefield, CBRE, etc. are coming up with contrasting reports regarding the office space demand.
BANGALORE: A recent report of CB Richard Ellis, a US based property consultant, stated that the office space absorption in India rose by 37%. The rise is on a year-to year basis. In the opinion of CBRE, January 2013 witnessed higher demand.
Meanwhile another American property consultant stated that the office space demand is down by 37%. This report of Cushman & Wakefield was absolutely on the opposite of what the CBRE report.
The reports of Jones Lang Lasalle and DTZ India are also not complementing each other. While JLL speaks of a moderate demand, DTZ speaks of a fall in the demand.
As per the report of JLL, office space demand is more or same. Compared to the first quarter of 2012 the demand is moderate this year. The report of JLL stated that in most of the cities the demand for office space remained moderate.
As per DTZ India the office space absorption is down by 20%. Anshul Jain, CEO at DTZ India, said that only 4.8 million of office space was absorbed this year. This is 20% lower than the 6 million sq. ft. absorption of 2012.
Mr. Jain added that there will be an improvement in the absorption level in the second quarter of 2013.
According to Cushman & Wakefield, 3.6 million sq. ft. was absorbed in the first quarter of 2013. This absorption figure is lower than DTZ India’s 4.8 million sq. ft. and CBRE’s 6 million sq. ft. of office space absorption.
Jones Lang Lasalle was another one to come up with a still different opinion. Head of research at JLL India Ashutosh Limaye said that their quarterly report will be released next week. He added that the demand for office space demand is to remain the same or modest.
Due to these contrasting reports, the market is confused. The industry experts remain unable to predict the office realty whether it is showing signs of recovery or whether it is falling down.