Fall In Office Rental In Delhi Ncr, Mumbai and Bangalore

Office rental prices are unlikely to see any major fall across the country’s three major business hubs National Capital Region, Mumbai and Bangalore even as the commercial realty markets in these areas are expected to witness a significant surge in supply, a leading real estate consultancy firm said.
While Bangalore is expected to witness further rise in the average office rentals, those in Delhi and adjoining areas like Gurgaon and Noida as well as Mumbai are expected to remain mostly flat in the short to medium term, CBRE said in its latest office market review for Asia-Pacific region.

Only certain small pockets in National Capital Region (NCR) and Bangalore could see a correction in prices in the near future, while any downward correction is very unlikely across Mumbai region, it said.

“The National Capital Region (Gurgaon and Noida) is expected to witness flattening trend in rentals over the short to medium-term,” CBRE said.

“However, some micro-markets with forthcoming supply is likely to experience a marginal value correction in the next six months,” it said, adding there would be significant additional supply in Gurgaon, Noida and Jasola in South Delhi.

CBRE noted that in preparation for hosting the Commonwealth Games in 2010, rigorous efforts have been made to improve infrastructure all across the NCR.

For Mumbai it said, that with over one million square feet of corporate office supply currently available and another nine million square feet ordinary office space expected to come online in the next two quarters, rental values are likely to remain stagnant.

4 Comments

  1. Posted August 29, 2008 at 5:50 am | Permalink

    After the “20:20” kind of price escalations in the real estate market in the first home sales or second sales, it seems that owners of apartments want to do the same with leasing as they are trying to increase rental values now; each new listing in a new building is coming at a different price. While there is no set indicator or a barometer for rental values, it seems that the Mumbai real estate market is set for another battle, and this time around it is on the field, with the licensor and licensee. Many companies who have operations in the financial capital of India give their employees a set amount, popularly known as HRA (Housing Rent Allowance ). Budgets are set keeping several factors in mind and companies do revise this annually. The maximum increase each year is not beyond 5 to 10%.However, with the real estate market jumping up in capital values, owners are now expecting a much higher return whenever they jump a tenant. This is creating a big problem with MNCs as they have to raise the HRA to suit market conditions. The large increase in rentals is also creating a dilemma for Indian executives as the rental rates are squeezing them big-time and they are often inclined to buy instead of lease for a long term. This will have a negative impact in corporate sector housing, which is in the range of rental values of more than Rs.50,000 per month.For more view- realtydigest.blogspot.com

  2. Posted September 27, 2008 at 12:10 am | Permalink

    The rentals in grade A properties in Nehru place are down from Rs 280 per sqft to Rs 270 per sqft, while grade B properties’ rentals have seen a decline of 25% to Rs 150 per sqft. Property rentals in other markets in the NCR region have remained stable.

  3. Bangalore property Market
    Posted December 30, 2008 at 3:16 am | Permalink

    HI Guys,

    Thanks for the such a wondeful informations about bangalore delhi property rantal, from last couple of months i m looking to investment in real estate sector in india so thorugh this post i found thats bangalore property prices are much heigher than other city of india..

    Plz continue posting this type worthful informations..

    bye

  4. apartments in delhi,ncr
    Posted March 16, 2009 at 4:52 am | Permalink

    this is Good news that fall rent of office space

Post a Comment

Your email is never shared. Required fields are marked *

*
*