Commercial Rentals in Delhi Likely to Go Up

July 12, 2007	(1 votes, average: 1 out of 5)  Loading ...
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Rents in Central and Suburban business districts (CBD & SBD) like Connaught Place and Nehru Place are going through the roof. Contrary to this, satellite towns such as Noida, Gurgaon, and Faridabad are witnessing a downslide in their commercial rentals.

A shift in the trend can be an outcome of two factors – a) Over supply of commercial space in the satellite towns, b) pending development of a new SBD in the Capital City, Delhi at Jasola.

Rentals for commercial property in CBD hover around Rs 325 per sq ft a month. The rents at these places have marked a hike by 7-8% quarter on quarter basis and by 50-80% on year to year basis.

Rentals in SBD have gone up by 15-20% on quarter to quarter basis and 50-70% on year to year basis. This accounts for approximately Rs 250 per square feet per month. Taking a look at the rent scenario in satellite towns of Noida and Gurgaon, they are around 40-50 per sq ft per month and Rs 100 per sq ft per month respectively.

However, commercial rents in certain NCR markets are expected to undergo corrections in the wake of total commercial supply to go about 5.6 million square feet.

Rents may stabilize in the next 5-6 months or witness minor corrections, says Vivek Dahiya, Director of DTZ India.

Considering a high proliferation of IT companies in NCR, the commercial rental market in these places is expected to grow by 20% in the next one year, as against a 50-60% growth registered over the past one year.

Talking about Jasola in South Delhi, it is certainly the next boomtown of the Capital. With construction activities of slightly 2 million square feet of commercial space, Jasola is all prepared to start ion the road to success in real estate. Prominent realty players such as DLF, TDI and Omaxe have already booked the spaces for themselves.

Delhi Development Authority, the land managing body, may auction some more commercial plots in Jasola later this year. The place is attracting large interests from multinational companies and retail chains as compared to satellite towns in the NCR.

News Published Under:   Delhi |

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