New Delhi: Fire broke out in the main warehouse of Vishal Retail Ltd but it’s unclear how much damage it has caused to the property and goods. Ambeek Khemka, Vishal Retail’s group president, confirmed the mishap at its 300,000 sq. ft warehouse near Gurgaon. “We cannot assess the damage, as yet,” he said, adding the fire has been brought under control.
Mumbai slips, Delhi up in office market survey
Bangalore: Mumbai and New Delhi continue to be among the 15 most expensive cities in the world for renting office space, despite falling prices and slowing demand, property advisory CB Richard Ellis Group Inc.’s (CBRE) latest rankings show.
A 23% fall in office rental rates in Mumbai between November and March has pushed India’s financial capital down by one position to sixth spot in the rankings. New Delhi has moved to 12th though office rents in the Capital dropped nearly 29% during the period and are still cheaper than in Mumbai. The report surveyed 170 office space markets across the world.
“The global recession has taken a toll on the world’s office markets, particularly those with significant concentrations of financial industry employers,” Raymond Torto, CBRE’s chief global economist, said.
Anshuman Magazine, chairman and managing director, CBRE South-east Asia, said Mumbai and Delhi’s continuance in the top 15 expensive locations show that the supply of commercial space still lags demand.
The rest of 2009 will see at least 30-40 million sq. ft of new space in tier-I and tier-II cities, he said. “This is space that was launched in 2007 and will be ready in the latter half of this year,” Magazine said. “This supply should keep rental values flat and even see them drop further.”
Demand is returning to the office space sector, said Vinod Rohira, director of K Raheja Corp., a developer of office space. “The demand is primarily from insurance, pharmaceutical and telecom companies, and in a small way, from some finance services companies as well who are looking at taking up small spaces between 5,000 sq. ft and 10,000 sq. ft,” Rohira said.