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Rental Value Soars In Central Business District(CBD)
Posted by Pradeep Sadanapalli | October 23, 2008 | 623 views
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Loading ...The demand for commercial space for the retail sector in the city’s central business district (CBD) has remained unaffected in spite of the economic slowdown. However, it remained flat in respect of the IT sector in the suburbs.
The rental values in shopping malls in the CBD soared by eight per cent and in the suburbs – Gachibowli and Hi-Tec city — by 20 per cent, thanks to low availability of spaces and leasing before construction.
Sentiment remains
On the industrial side, the capital value of assets as well as the rental value kept the sentiment up. Semiconductor companies that swarmed the Fab City pepped up the activity around it, according to the second quarter (July-September) report published by Jones Lang LaSalle Meghraj (JLLM), a real estate management company.
The CBD – Begumpet, Somajiguda, Raj Bhavan Road and Punjagutta – remained hot favourites for retail businesses with dearth of mall spaces haunting the city.
The secondary business district (SBD) consisting of the posh Banjara Hills and Jubilee Hills continue to remain home to luxury business brands (like Audi and Reliance Digital), commanding five per cent higher rental values than the properties in CBD.
The rental value for the whole year for retail spaces could grow by 33 per cent in the CBD and the SBD.
While there was no new additional space created in the second quarter, redevelopment – conversion of old cinema theatres into multiplexes – is witnessed in the city’s heartland. Over 30 lakh sq. ft of space is likely to be created with the addition of RK Cineplex, GVK Mall and the like in the second half of the year.
Regional Director of JLLM George Johnson said that the major leasing transactions in Gachibowli and Hi Tec city in Q2 came to 3.60 lakh sq. ft. Yet, the annual forecast of 20 per cent space in the IT corridor remaining unabsorbed by hirers would stay.
The completion of phase-I of the Outer Ring Road (expected by early 2009) would accelerate the activity in Gachibowli and also Shamshabad.
SOURCES:
Hindu
Topics: Real Estate |
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