Office space absorption increases, but rentals low in Mumbai
The fallen rentals are big incentive for relocation and expansion plans for firms as owners realize that it is better to lease the premises than keep it vacant and spend on maintenance
Aug 12, 2013
Source : The Times of India


MUMBAI: HSBC recently leased 1.8 lakh sq ft at Nesco IT Park in Goregaon for a monthly lease rent of about Rs 1.8 crore or Rs 95 per sq ft a month. In May, UK-based banking major Barclays leased 1.8 lakh sq ft of space at Nirlon Knowledge Park in Goregaon for its back-end operations at Rs 95 per sq ft.

HSBC has also registered another office space deal of 70,000 sq ft on rent in Indiabulls Financial Centre in Elphinstone for about Rs 120 per sq ft, excluding maintenance charges.

Tax consultancy firm KPMG has taken about 1.5 lakh sq ft in Indiabulls Financial Centre for Rs 120 per sq ft, excluding maintenance charges. An American FMCG firm has also leased nearly 35,000 sq ft space in Indiabulls Financial Centre.

The most recent major office space deal was also concluded in Lower Parel.

Property consultants say these deals in the past few months are an indicator that office rentals are firming up, especially in the Lower Parel-Dadar belt. While rentals in Powai and Worli have declined by 20%-25%owing to oversupply and landlords reducing rentals to lure tenants, they have and in the Andheri-Goregaon belt, rentals have fallen by nearly 25% and a maximum 70% in a few buildings in the Andheri-Goregaon belt.

“With no new commercial buildings being built, rentals are firming up, especially in the Lower Parel-Dadar belt, having a total available commercial space supply of 9 million sq ft. In the last few months, builders and landlords have reduced rentals to lure tenants, thus increasing absorption of space in this area,” said the MD of a global property consultant.

Sanjay Rohida of Aryans Properties said, that the recent lease transaction rates are an indication that rentals are stabilizing and easy accessibility has been given preference. “The fallen rentals are big incentive for relocation and expansion plans for firms as owners realize that it is better to lease the premises than keep it vacant and spend on maintenance,”he said.

A recent office space report by global property consultant Cushman and Wakefield said that about 2.4 million sq ft of office space was absorbed in Mumbai in the first half (Jan-June), the highest across India. But the number was still 10% less compared to the first half of 2012. The city witnessed a net absorption of 1.62 million sq ft, an increase of 16% from the same quarter last year and twice the previous quarter. Supply during the first half of 2013 saw a decline of 7% compared to the same period last year.

Latest Realty News

PCMC to conduct property survey
Aug 12, 2013
PUNE: The PimpriChinchwad Municipal Corporation will start a survey of properties within the municipal limits from September 1.
Pune gears up for affordable housing
Aug 10, 2013
PUNE: Affordable housing is a term we use for the residential units in India’s urban areas, which are affordably priced, with respect to the households that fall within a specific limited income range. There is no single set of parameters to define what an affordable housing unit should cost in India. This is because the pricing and feasibility of the developers of affordable housing, is a function of the city, the location within the city, the type of project being built and also the constructi
Three reasons to invest in Majiwada
Aug 10, 2013
MUMBAI: Located off the Thane-Ghodbunder Road, Majiwada is one of those locations where residential real estate market is riding high on connectivity. Experts say that the area is expected to drive significant residential demand in the coming years. Apart from enhanced connectivity, social infrastructure and comparatively lower prices has gradually rendered Majiwada a prospective residential option for home seekers
Sand mining ban: Builders fear project cost escalation
Aug 09, 2013
MUMBAI: The Confederation of Real Estate Developers’ Association of India has said the ban on sand mining by the National Green Tribunal was arbitrary and against growth.
DLF puts Pune IT special economic zone on the block
Aug 08, 2013
MUMBAI/BANGALORE: DLF, India's biggest real estate developer, has put on the block the second phase of its under-construction IT special economic zone project in Pune'sHinjewadi for an anticipated Rs 250 crore, a move in line with the company's strategy to pare its debt by exiting non-core projects and businesses.
Low cost homes in East Pune
Aug 06, 2013
PUNE: East Pune localities such as Kharadi, Wagholi and Hadapsar, which offer one and 2-BHK properties in the Rs 20-40 lakh price range, are witnessing large scale consumption of residential spaces. Old residents of the city reminisce how these areas grew with the boom in real estate witnessed a decade ago. Wing Commander Atul Chandra, who has made this city his home since the late 1990s, remembers his weekly rounds to the Hadapsar sabzi mandi.
Worli-Prabhadevi-Dadar West: Best option for upper-crust homebuyers
Aug 06, 2013
MUMBAI: Worli in south Mumbai and Prabhadevi and Dadar west in central Mumbai, are the premium localities in Mumbai offering an array of property options for the well heeled buyers. Infrastructure marvels with good connectivity, are attracting end-users and investors to these areas. Let’s delve into the residential options available, with facilities and amenities in these areas and see what sets them apart:
Orbit Corporation defaults on 96 crore loans
Aug 06, 2013
MUMBAI: Mumbai-based real estate developer Orbit Corporation has defaulted on liabilities of 96 crore, including repayment of loan availed from LIC Housing FinanceBSE -5.13 % and the interest on the amount, joining the list of troubled players in the sector grappling with a severe liquidity crunch.
Pune civic body collects Rs 500 crore as property tax
Aug 05, 2013
PUNE: The civic administration has collected Rs 500 crore from property tax since the start of new financial year. Total 5.58 lakh property owners have paid their tax since April 1.
Rented your property? Steps to take if a tenant refuses to vacate
Aug 05, 2013
MUMBAI: When it comes to the relationship between a property owner and a tenant, it's best to be safe than sorry. Yet, hasty decisions, cutting corners and blindly trusting brokers are the reasons for many a legal battle waged by landowners against rogue tenants. Take the case of Mumbai-based Merlyn D'Souza.

Latest Realty News Of State

Realty Talk's