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Commercial Real Estate and Office Space Market is also hit
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10/6/2008 6:16:30 AM
Last quarter saw office space demand lagging far behind the supply levels in major cities, as companies turned cautious. As per experts, the demand in last quarter was dominated by absorption (where companies move-in or begin fit-outs) in fresh pre-commitments. Markets like Noida (NCR), and Rajiv Gandhi Salai (Chennai) recorded excess supply for last quarter thus increasing the overall vacancy rates.The second quarter witnessed stable rental values across micro-markets in the major cities with some central business district (CBD) and off-CBD locations witnessing rental hikes of 3-5% over the last quarter. Some locations in NCR and Chennai, saw a correction in rentals due to excessive supply as well as deferred development plans of various proposed projects.

Pune was an exception to the stable rentals where all micro markets saw a rise in rental values over the last quarter. Malad in Mumbai recorded the highest quarter-on-quarter rental appreciation, due to lack of supply of Grade A properties and with most of the new supply already pre-committed. Dalhousie (Kolkata) too witnessed high rental increase due to high demand and lack of redevelopment potential or fresh supply. There has been a slowdown in the actual transactions witnessed in the second quarter of 2008 owing to a number of factors, primary amongst which is a general slowdown of economy.

Posted By :  Amit

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Posted Comments
Very well written.
Good work Amit.

Comment by : Manish     10/9/2008 3:31:40 AM
Good Blog.

Comment by : tarun     10/9/2008 3:30:37 AM
Captains Realty (P) Ltd.