Small developers relocating to other sectors

October 13, 2008	(Be the first to rate this story!)  Loading ...
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The rental rates of commercial property have soared in Chandigarh, thus forcing the small developers to shift to other sectors. The number of vacant sites in sector 8 and 9 has increased. “The benchmark for rentals has increased manifold over the years. Rentals have increased by almost 100 percent in the past one year. Five years ago, the rent for a showroom in Sector 8 on the Madhya Marg was around Rs 3 lakh. Today, it has shot up to more than Rs 16 lakh. The upcoming auction will further boost the rentals considerably,” said Mangat Rai Baboota, a real estate consultant.

The rent of an 8000-square feet showroom, if divided floor wise, comes out to be Rs 12 lakh for the ground floor, between Rs 3 lakh and Rs 4 lakh for basement and first floor. According to the existing trend, multinational companies take the complete showroom on rent rather than independent floors. The same rentals exist in Sector-17 main market. According to sources, recently a showroom rented out by a popular sweet shop in Sector 17 to a clothing chain is fetching Rs 16 lakh a month. “At present, the availability of vacant commercial spaces in these sectors is 15 per cent, which otherwise could have been an excellent source of income to the landlord and tenant,” says R P Malhotra, general secretary, Property Owner Welfare Association, Chandigarh. The rent in other sectors like 7, 26 and 35 is almost half the rates at Sectors 8, 9 and 17. This is forcing small and medium enterprises to relocate to cheaper areas or inner markets of these sectors.

News Published Under:   Chandigarh |

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