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With no major leasing transactions witnessed in the CBD area, the
capital and rental values for office space corrected marginally As
compared to Q1 2008, the rental values reduced by around 11 per cent
whereas the capital values depreciated by 13 per cent in the CBD. The
rentals in SBD of Nehru Place dropped by 20 per cent. Further, the
secondary market of Jasola and Saket witnessed a decrease of 8 per
cent in the rental values. The capital values, however, witnessed a
drop of approximately 13-14 per cent in both the markets. The
peripheral markets of Gurgaon and Noida witnessed a drop of
approximately 12 and 16 per cent in Q4, 2008 as compared to Q3, 2008.
The capital values however, depreciated by 9 per cent in both the
micro markets.
Office space take-up is directly impacted by the business outlook and
with the global economic and business sentiments continuing to remain
bearish; the demand levels in Mumbai are likely to remain low over the
short to medium term.
Chennai
The commercial property market in Chennai has never before seen as
dramatic a shift in market dynamics as witnessed in the last quarter.
On one hand the city has witnessed enhanced levels of supply; whilst
on the other there has been a marked reduction in demand during this
quarter as compared to earlier quarters. In light of the economic
prospects, the suburban and peripheral micro markets are expected to
witness further pressure on rental and capital values.
As for Kolkata, the demand levels, going into the first quarter of the
New Year, are likely to be subdued. Rental and capital values expected
to remain under pressure over short to medium term.
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