By Accommodation Times Research
Commercial rentals in major metros are falling drastically. Corporate relocating their offices and back offices. In Bandra Kurla Complex the rates have touched rs.150/- per sq ft per month many buildings and there are no takers. All the CBDs of Mumbai i.e. Nariman Points, Lower Parel, Andheri East, Bandra Kurla Complex and some part of Malad Linking Road have witnessed major set back as corporate and business houses are shifting to extended suburbs for want of cheap rentals. Navi Mumbai seems to be best bet as menpower is cheap and talent can be deployed. The rental rates in Navi Mumbai ranges from Rs.15/- to Rs.45/- in posh building or IT parks.
Majority of Pune software companies are moving out of Hinjewadi and now decentralized. Huge supply and good deals have made the commercial lease market crash, well almost, to 2001 level of rentals. Decentralisation of commercial activities and new areas like Aundh, Sinhgad Road, Undari , Chakan and Pimpari and Chinchwad area adjoining Talegaon are offering best deals for commercial office spaces.
In Delhi, Faridabad, Merut, Gurgaon West and Laxmi Nagar are offering almost half the cost of what a company is ti pay in Central Delhi or South East Delhi like Mathua Road, Jhandewala, Nehru Nagar, Greater Kailash and other CBD areas. The rates have touched 65/- to 95 per sq ft and likely to fall further.
In Ahmedabad, the rates are choice of occupier. Pay the maintenance and property tax and the space is yours for a nominal rent. Law garden, Ashram Road, Ellisbridge, Jansatta Road, and many parts of Satellite areas are deserted because the office are shifting to Bopal, Bodakdev and Sanand. The ongoing rates are ranging from 10/- to 45/- per st ft for office space with taxes and service tax.
Bangalore have seen major giants shifting to Hyderabad and Secundarabad. Within Bangalore, because of congestion and traffic, business have moved to north towards Airport. New space offering companies rates which are just 25% of what they are paying in main city. Major shift in business district is in offing and likely to dessert the main city.
Chennai too witnessing huge supply in business and commercial space and likely to come to 2003 level of rental yields for real estate investors.