Best Time For Small Indian Firms To Buy Office Space

Published: April 28, 2009 at 8:51 AM | Author: Administrator
News Source: 24 April 2009 - IndianRealtyNews.com

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This maybe the right time to buy or lease office space for many small Indian firms for whom high rentals had been a stumbling block to expansion when real estate was booming. A rental and capital value correction of commercial office space is in progress across all markets in India. As compared to last year, rentals are down 25-30% on an average across the top eight cities of India. Some areas have been affected worse than others. According to real estate consultant Cushman & Wakefield, in Mumbai, Lower Parel is down 39%, Worli is down 38% and Andheri is hit 33%; In the NCR, Gurgaon is down 26%, Noida is 20% lower and Jasola, an emerging business district, is down 24%. Even capital value of office space is down 20-25% on an average. "Rentals and capital values are close to the bottom. There might still be a little correction in the future. But there will be never a better time to start looking or to close deals at these decreased prices," says Mr. Kaustuv Roy, executive director at Cushman & Wakefield.