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Jul 26, 2013, 03.34 PM IST | Source: CNBC-TV18

Find out: Property trends in key cities across India

CNBC-TV18's weekly real estate show showcases Cushman & Wakefield’s report on commercial property trends in Pune, Bangalore, Chennai, National Capital Region (NCR).

Bucking the national trend, Pune recorded an increase of 37 percent in absorption of office space. Banks and financial services have been betting big on the city. Despite that, the city does suffer from oversupply. CNBC-TV18's real estate show 'Prime Property' exhibits Cushman & Wakefield's report on property trends in key Indian cities.

Ravi Ahuja, executive director, Cushman & Wakefield said, "Nagar Road will do well. Some reputed developers such as Marvel and Panchshil at Kharadi made some very good constructions in the Western corridor. In Hinjewadi, developers such as Wadhwa’s, DLF, Embassy have been there. They give excellent quality amenities and good opportunity for staff welfare in their own campuses. These are some of the growth corridors, which will shape the future and see some multiple fold growth."

Also read: North Chennai- ‘Connectivity’ prime concern: Indiaproperty

Chennai’s commercial property market is as stable as the residential market. There are no expectation of any major price appreciation or depreciation. Banks and financial services like Chennai for non-voice BPOs and data centres.

Ahuja feels, “Taramani are fetches a premium and corporates love to be there right upto Perungudi. That stretch is prime and goes between Rs 50-60 square feet a month. Right upto 15-20 kilometers stretch at OMR from Taramani right upto Navalur or Siruseri, is a clear growth corridor.”

“Next one is in Chennai being a very industrial hub is a location called Ambattur, Ambattur has been in a very traditional industrial location yesteryears and that has been converting itself into a new found IT hub.”

“Overall, the GST Road Ambattur, as well as the OMR Stretch may have about 8-10 million square feet of ready vacant space. So, I don’t see prices really go up that rapidly over the next 2-3 years. It is a long haul.”

Bangalore has disappointed with absorption dropping 22 percent in the first half of the year. The slowdown in the IT sector is what has resulted in the poor performance of Bangalore's commercial realty market. We asked where investors should and should not bet on in Bangalore.

Ahuja said, “The South East corridor of Whitefield it is still oversupply situation, it is always an oversupply situation for the last 3-5 years. Three million square feet is lying vacant and ready for offer. So, one should stay away from such areas. On the Outer Ring Road, which was always due to lack of supply always in demand, has suddenly seen some huge amount of space in the market over the last two or three quarters.”

“The stretch between Sarjapur and Marathahalli and from Marathahalli to the KV Puram are really the next growth corridors. Outer Ring Road, the Sarjapur Road and Hebbal, which is going to shape up due to the international airport and the connectivity it provides towards the North”, adds Ahuja.

The National Capital Region (NCR) including Gurgaon and Noida has had a rough ride with absorption dropping 40 percent. New grade-A buildings in New Delhi's Connaught Place, like that of Parsvnath are commanding a high rent of Rs 300 per square feet. So corporate continue to flock to the suburbs.

“The CBD of Gurgaon, the Cyber City where DLF has its flagship have rentals hovering between Rs 60-65 per square feet. It offers both IT as well as non-IT and even some of the special economic zone (SEZ) products, which Unitech offers in that market”, Ahuja elaborates.

He adds, "Corporates are looking at expanding and relocating further away towards Sohna Road where the rentals are far more reasonable between Rs 35-40-42 per square feet a month. The upcoming corridors of Manesar, which are today found to be a little remote, will see some offtake in activity and absorption over a period of time where rentals are far lower than Rs 30 a square feet a month."

"Noida has its different catchment and a locale altogether in terms of locations. The Noida Expressway is one of the prime most and yet very reasonably priced compared to Gurgaon. Some of the other sectors in Nodia like Sector-32 and few others have been gaining some good traction and absorption from corporates."

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Property rates
  • Residential
  • commercial
Mumbai
Capital Values Rate/Sq ft (INR)
Aajiwali
3000 - 5000
Ambernath
3000 - 5000
Badlapur
1000 - 3000
Bhandup (West)
11000 - 13000
Chembur (East)
15000 - 17000
Chembur (West)
11000 - 14000
Dombivali (East)
4000 - 6000
Ghatkopar
13000 - 15000
Heeranandani Gardens Estate - Powai
25000 - 30000
Hiranandani Gardens Estate - Powai
25000 - 30000
Kalyan (East)
2000 - 4000
Kalyan( West)
3000 - 5000
Karjat
1000 - 3000
Khandala
8000 - 10000
Kharegaon
5000 - 7000
King Circle
17000 - 28000
LBS Marg
12000 - 15000
Lonavala
3000 - 5000
Mulund (East)
11000 - 14000
Mulund (West)
11000 - 14000
Mumbai Nasik Highway
3000 - 6000
Powai
15000 - 17000
Senapati Bhagath Singh Road
3000 - 5000
Sion (East)
18000 - 21000
Sion (West)
17000 - 22000
Tilak Nagar
12000 - 22000
Ulhasnagar
3000 - 5000
Vikhroli
11000 - 14000
4 Bunglows
17000 - 28000
7 Bunglows
13000 - 23000
Chandivali
10000 - 15000
Malad (East)
12000 - 14000
Versova
21000 - 24000
Airoli
4000 - 8000
Belapur
6000 - 9000
Ghansoli
6000 - 8000
Kalamboli
4000 - 9000
Kamothe
4000 - 6000
Nerul
7000 - 10000
Palm Beach Road
12000 - 15000
Panvel
3000 - 6000
Sanpada
8000 - 10000
Sea Woods
8000 - 10000
Ulwe
3000 - 6000
Uran
3000 - 6000
Vashi
9000 - 12000
Altamount Road
62000 - 72000
Breach Candy
62000 - 74000
Chowpathy
48000 - 58000
Colaba
42000 - 46000
Cuffe Parade
67000 - 69000
Dadar(East)
32000 - 34000
Dadar(West)
29000 - 32000
Lower Parel
32000 - 34000
Mahalaxmi
38000 - 40000
Malabar Hills
68000 - 75000
Mumbai Central
23000 - 34000
Napean Sea Road
66000 - 74000
Parel
26000 - 34000
Prabhadevi
37000 - 39000
Tardeo
41000 - 49000
Worli
36000 - 41000
Andheri (West)
18000 - 20000
Andheri(East)
15000 - 17000
Bevarly Park
5000 - 7000
Bhayander (East)
5000 - 6000
Bhayander (West)
3000 - 5000
Boisar
1000 - 3000
Borivali (East)
11000 - 13000
Borivali (West)
10000 - 14000
Dahisar
4000 - 8000
Goregaon (East)
13000 - 17000
Goregaon (West)
12000 - 14000
Kandivali (East)
12000 - 14000
Kandiwali (West)
11000 - 12000
Malad(West)
9000 - 14000
Mira Road
5000 - 7000
Naigaon
1000 - 4000
Nala Sopara (Eastt)
3000 - 5000
Nalasopara (West)
3000 - 5000
Poonam Nagar
6000 - 8000
Shanti Nagar
7000 - 9000
Shrishti
6000 - 9000
Vasai Road
1200 - 4000
Virar
1000 - 3000
Note: Price trend are based on asking rate and not necessarily on the transaction date
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