Real estate news on Office space transactions down 70% in Kolkata during quarter ended June

Commercial Properties, IT/ITeS, Price Trends, SEZ, Kolkata
Posted on Aug 13, 2015

KOLKATA: Office space transactions in Kolkata shrunk 70 per cent from a year ago to 0.25 million sq ft in during the quarter ended June due to low demand, showed a Colliers International India report.

ITITeS remained as the key occupiers with 70 per cent share of the total absorption. Most of these transactions were at Sector V and New Town micro market in the form of relocation due to cost streamlining approach of occupiers.According to the Kolkata office market report, rental value at micro markets of Park Street, Camac Street, Chowringhee Road and AJC Bose road fell 5 per cent from a year ago between Rs 85 and Rs 115 per sq feet whereas rental values around IT hub Salt Lake sector V and New Town fell 9 per cent.

The only two leasing transactions during this quarter were British Telecom leasing 0.1 million sq ft in DLF SEZ at New Town and Reliance Geo leasing 0.05 million sq ft of space in Globsyn Crystal at Sector V . "There has been no new major supply in the market in 2015. At the same time demand has been muted in the first half, resulting in no reduction in the large available inventory. Occupiers are expecting a reduction in rental and capital values. However, we do not foresee a change in prices," said Swapan Dutta, Senior Associate Director, office services at Colliers International India.

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