BENGALURU: Chennai's net absorption was down by 20% amidst fewer large transaction in the city in 2016.According to Cushman & Wakefield, the net absorption declined by 20% to 2.9 msf, as the city witnessed fewer large deals (above 100,000 sf).Net absorption in the first nine months of the year (2016) was especially weak, with activity picking up only in the last quarter. Roughly 1.2 msf of the net absorption was seen in suburban south sub-market, including Perungudi, Taramani, Thiruvanmiyur and Velachery. The total supply in Chennai declined 31% to 1.9 msf during 2016, with majority seen in the suburban south sub-market.According to Cushman & Wakefield, Bengaluru remained the preferred IT-BPM destination, constituting 37% of the total leasing activity followed by Hyderabad at 26%. "Consulting services took up approximately 6% of the total office space leased, while BFSI amounted for about 4% of the total leasing in 2016. Pharma & Healthcare constituted about 3.2% while E-commerce formed about 1.5% of the volume of office space leasing transactions in 2016.

Source: Economic Times February 20, 2017 10:09 UTC