It has hit rock bottom. And things can’t get any better than this.
The downward trend in office space rentals in business districts like Nariman Point and Bandra-Kurla Complex (BKC) is now proving attractive to business houses.
Experts said business houses were clinching good deals with the general sentiment that rentals had almost reached the bottom was fast catching up.
A report released by real estate consultancy firm Cushman & Wakefield, rentals for April to June 2009 had decreased compared to the previous quarter — January March 2009.
For a 1,000-sq-ft area office at BKC, the current monthly rental is pegged at Rs 2.25 lakh. During the quarter of 2008-09, it stood at Rs 2.80 lakh. During April-June 2009, rent for an office of the same area in Nariman Point was Rs 3 lakh as against Rs 3.50 lakh for the previous quarter.
Cushman & Wakefield’s Executive Director Arvind Nandan said many firms were showing interest in renting property. “Many companies had postponed in wake of General Elections and the Budget,” said Nandan.
“Many are realising that rates are stabilising and have almost reached the lowest levels or close to that, and so they’re striking deals,” said Nandan.
Besides Mumbai, places like information technology centres in Thane and Vashi have recorded a fall in rentals. Monthly rentals in Thane have dropped from Rs 60 to Rs 40 per sq ft. In Vashi, they’re down from Rs 65 to Rs 60 per sq ft.