Office rentals in city stablise

Published: 20th October 2013 08:27 AM  |   Last Updated: 20th October 2013 08:27 AM   |  A+A-

A recent report by real estate group CBRE revealed that the rental values for office spaces in the city were largely stable across all areas except for the central business district and Outer Ring Road where there was a marginal increase.

The report, titled 'India Office Market View Q3 2013’, stated that areas like MG Road, Richmond Road, Residency Road and Lavelle Road saw a 2-3 per cent hike in rental values over last year. Around 0.16 million sq. ft. was absorbed during the past three months in these areas, the report stated.

Around 0.35 million sq. ft. of office space was released into the market in Yemalur, and demand has marginally increased for small and medium spaces in the extended business district areas of Indiranagar, Koramangala, Old Madras Road and CV Raman Nagar. Approximately 0.24 million sq. ft. of office space was absorbed in this quarter.

Anshuman Magazine, chairman of CBRE, has predicted that rental values would remain stable over the coming months as well. He said, “There will be negligible movement in the next few months. Occupiers are expected to remain cautious, with most corporates intent on consolidation and efficient utilisation of existing office space.”

Demand, however, declined in the peripheral business district areas of Whitefield and Electronics City this quarter.

There were also fewer transactions near Sarjapur Outer Ring Road stretch with absorption at 0.47 million sq. ft. of space as compared to over 0.74 million sq. ft. in the previous quarter.

Rental values rose, however, by 4-5 per cent in the commercial office segment and 2-3 per cent in SEZ areas, the report stated.

Stay up to date on all the latest Bengaluru news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp