Like the Delhi residential real estate witnessing a sluggish phase for the past few months the commercial properties have also been hit down by a slowdown. Subsequently, some business districts in Delhi have seen a decline of up to 25% in office rentals in the June quarter, media reports.
The rental values of grade A and B properties in the city have seen a significant decline. For instance, the rentals of grade A properties in Nehru place are down from Rs 280 per sq ft to Rs 270 per sq ft.
With the retail boom and increasing return on investment from the real estate market, the value of Delhi properties have been sky-high since long. The Delhi real estate builders are taking the drop in prices as positive, since many of their projects are lying vacant for quite a long time now.
Individuals and business firms have been cautious of investing in residential as well as commercial property and were waiting for a price correction, reveals a renowned Delhi Real Estate Developer. With this drop in the commercial property values builders and real estate agents are now expecting some activity in the market.
Space crunch has been the prime reason for the soaring commercial property values in the city. But, with a lot of expected supply in the Delhi-NCR market by early 2009, rentals are likely to trim down more in the city, opine the industry experts. Amid Jasola being one of the few remaining places where land is available in Delhi, it will continue to add more space in the coming time to the Delhi property market.
Besides, being the much sought after residential property market the commercial properties too have always been in much demand in Delhi. As the city has better edge over many other metros in terms of infrastructure, availability of professional work force and connectivity, Delhi real estate has maintained an apex position in the real estate ladder of the country.