India Real Estate Monitor

According to latest report by global realty consultant CBRE office rentals in Gurgaon have declined by up to 8 % in the second quarter of 2008 owing to increase in supply and softening of demand for office space.
“Gurgaon market has undergone a 5-8 % correction in the office and IT rentals from their peak rates in the last quarter because of increased supply and softening of demand,” CB Richard Ellis said in its report on office rentals for the April-June quarter.
The common monthly rentals for office space in Gurgaon have declined to Rs 95 per sq ft in June from Rs 105 a sq ft in March, it added.
With considerable addition projected in supply of office space in Gurgaon, CBRE said the rentals are expected to remain under pressure over the next few quarters.
The report noted that MG Road, Golf Course Road and DLF Cyber City area in Gurgaon are preferred locations for office space leasing because of factors such as proximity to National Highway-8, accessibility to the Airport and being on route to the proposed Delhi metro.
About Noida, the consultant said it continued to be a viable option for cost conscious IT/ITeS companies due to increased availability of office space options at competitive pricing as well as the locations accessibility from East and South Delhi.
“In the recent quarters, the micro-market has been witnessing robust demand and increased leasing activity. This market trend is also evident from the Noida authority auction of a commercial plot measuring 95 acres which was bought for a record price of Rs 5,006 crore by BPTP,” CBRE viewed.