Office rentals have fallen over the past four months in key commercial areas of Delhi and Mumbai, signalling a correction in the real estate market, says a report by industry consulting firm C.B. Richard Ellis released on Thursday.
The report said an industrial slowdown and the financial meltdown in overseas markets, besides credit availability, had hit the market mood.
In Delhi’s Connaught Place, Grade A office space fetched a rent of Rs 300 per square foot per month in deals during September, down from Rs 340 per square foot in June, it said. In Nehru Place, that slumped to Rs 250 from
Rs 270 over the same period, while in Noida, information technology-related Grade A offices saw rents falling to
Rs 40 from Rs 45. But Gurgaon rentals held steady at Rs 95 over the period.
Similarly, in Mumbai’s Nariman Point and adjoining areas, the rental fell to Rs 425 per square foot per month from Rs 475 while it fell to Rs 375 from Rs 415 for the Bandra Kurla Complex.
The report said information technology was affected by the slowdown.