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.