Commercial rentals across country have not seen vibrancy

MUMBAI: The commercial rentals across the country have not seen vibrancy in the past three months in 2012 as compared to the same period in 2011. This lack of vibrancy is because some localities have witnessed rental price correction
According to a study of commercial rentals carried out by 99 acres shows some localities in Delhi and Mumbai saw an increase in per square feet growth figures over the past one year.``For example, Mumbai saw a 2% increase in commercial rentals, Bangalore saw 3% growth over the last one year,’’ said Vineet Singh, Business head, 99acres.com. ``Clearly the market is range bound now indicating stagnancy in the environment,’’ Singh added.
According to the survey, Thane is well on its way towards consolidating its position as the new CBD while Goregaon continues to gain traction from corporates fuelling an increase in rates. In Noida, sectors 1 to 10 has seen some upside in commercial rentals due to availability of diversified sizes and proximity to public transport like the Metro. South Delhi localities like Lajpat Nagar and Greater Kailash are increasingly becoming one of the best choices for commercial renting requirements due to increased connectivity and high density of population. Indiranagar in Bangalore and Banjara Hills in Hyderabad have witnessed large residential houses being demolished and re – constructed into commercial complexes which have turned these residential hubs into commercial districts.
A detailed analysis of commercial rental trends of the country shows, most localities in Mumbai saw depreciating rental rates. Kandivali(W) saw maximum price dip in commercial rental rates with PSQF prices dipping from Rs 83 in the first quarter of 2011 to Rs 67 during the same period in 2012. ``Both Borivali (W) and Lower Parel saw dips of 10 % respectively during the same time period. Most of the other areas like Andheri(W), Malad, Bandra(W), Mulund(W) saw stable rentals indicating not much movement in real estate prices as well,’’ said Singh.