Office space absorption dropped in Bengaluru in the October-December quarter, compared to the same period last year, partly due to limited availability of Grade A office space in the city. Gross absorption fell to 4.6 million sqft in the quarter, from 5.3 million sqft a year earlier, according to data from an independent property consultancy.
But this was much higher than in the second quarter, when it was just 2.3 million. Gross absorption includes net absorption and property under development that will be delivered within 4-6 quarters.
Vacancy has been at an all-time low in prime office spaces of the Outer Ring Road (ORR) stretch, hovering between 2-4% as builders take time to come up with fresh supply. With a constraint in supply, rents in the area are expected to rise in 2017.
Read more: Economic Times
