Office space rentals in metros and larger cities of India are witnessing a fall since the last financial year, according to a report CB Richard Ellis.
According to India Office Market View — the report on office spaces in major cities by global real estate consultancy CB Richard Ellis, the vacancy levels have increased and rentals were corrected because of dampened demand.
While the office markets of Chennai recorded the least correction of 6 per cent in the third and fourth quarters of 2007-08, the maximum of 30 percent was experienced in the Extended Business District of Mumbai, stated the report. Bengaluru too witnessed about 30 per cent vacancy with IT firms slowing down fresh acquisition plans.
In terms of rental values, the peripheral markets of Gurgaon and Noida witnessed a drop of approximately 12 per cent and 16 per cent respectively in the fourth quarter of 2007-08, as compared to the previous quarter, the report added.