With commercial real estate in doldrums, builders are now adopting various means to boost sales and rentals.
Take the case of Kohinoor Square at Dadar where bookings started at Rs20,000 per square foot for the smaller offices (1,000 square feet). According to Atul Modak, vice president, Kohinoor Square, the demand for small offices is great. “We sold more than 50% in the first 15 days itself,” he said.
Similar offers were made by Kanakia at Kurla, which priced offices at Rs15,000 per square foot, and the Marathon Group, which is selling its Innova office spaces in the range of Rs18, 000Rs 20,000 per square foot.
According to Ravi Ahuja, director of office transactions at Cushman and Wakefield India, a leading real estate consultancy, it is a ‘buyer’s market’: “Consumers are getting a good deal as there is an oversupply.”
However, he cautioned that this is soon going to end. “As there are no more commercial complexes coming up, in the next two years, we will see occupancy levels going up.”
Buyers are also driving a hard bargain.
“I am negotiating with at least three builders in Pare and Andheri and will soon move in to an office,” said Anil Jain, a stock broker, adding that malls offer excellent facilities and his company profile will get a boost by moving to such a complex.
Many builders are really trying hard to lure consumers. A builder asked a leading MNC to move from its Nariman Point office with the promise to partly waive their rent.
“We have a lock-in period till next year at our existing office, and the Lower Parel builder promised not to charge us rent for one year,” said a senior official of the MNC.
However, experts still decry the loading factor that ails commercial complexes. “This high loading reduces the carpet-area of the office space,” said real estate expert Ajay Chaturvedi.