An economy that’s expanding at 9% is creating more wealth and demand for commercial space. While higher interest rates have crimped demand for residential homes as individual buyers hold back, demand for office space is showing no signs of letting up.
Capital values in India’s top business centres of Mumbai and Delhi-NCR (Delhi and the National Capital Region) are at similar levels, touching nearly Rs40,000 per sq. ft, while rental values in Delhi-NCR are softer than Mumbai.
REALTY CHECK (GRAPHIC)
According to DTZ India’s office market brief for the first quarter of 2007, while rents in Mumbai will continue to escalate in 2007, there may be a possibility of some stabilization in the second half of the year or early 2008, when several office projects will be completed in micro-markets such as the Bandra-Kurla Complex, Goregaon, Andheri (East) and the mill land developments in city’s suburban business district (SBD).
And Pune is certainly the IT destination of choice, with at least eight private IT special economic zones coming up, which will supply grade A IT and IT enabled services (ITES) space in the next three-five years. Hyderabad, too, will benefit from IT and ITES growth.