Commercial Property Rentals are spiraling south in Mumbai as the US sinks deep into financial crisis. Barclays Bank took space at Cee Jay House in Worli for Rs725/sq ft/month in May 2008, the adjacent building with 80,000 sq ft of space is now receiving enquiries for Rs300-350. Property brokers are currently getting queries for Rs200-225 for One Indiabulls Centre compared to Rs275-325 earlier while in BKC (Bandra Kurla Complex) where rentals peaked at Rs450, clients are now negotiating for rates below Rs300.
Deals for office space have slowed by 30% in the last three months. Leading property brokers and consultants in Mumbai say things will be worse with prospective tenants asking for a 50% cut in rates.
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