Saturday, September 27, 2008

Mumbai commercial rentals Fall

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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