Mumbai: Mumbai witnessed a marginal dip in the rental values with sluggish leasing activity during the third quarter this year. The small markets of Lower Parel, Thane and Navi Mumbai seen maximum traction and were mostly preferred for leasing activity, said the latest report of CBRE’s, India Office Market view in third quarter.

The rental values decline by 2-3 pc while the vacancy remained stable with a estimate range of 6-7 pc in the city. Central places like Nariman Point, Fort and Cuffe Parade had suffered the most. They face a less transaction activity, due to a shift towards peripheral locations in the third quarter.

Business Districts of BandraKurala Complex, Kalina, and Kurla (W), seen a decline in commercial leasing this quarter. Almost 0.10 mn sqft was taken in this quarter, compared less to the previous quarters.
The Business centers in Lower Parel have seen a strong demand for corporates.  Around 0.26 mn sq ft of fresh IT space had been occupied on the supply front. The rental value remains the same in commercial developments, due to the availability of commercial space in the area. But on the other hand, leasing work in small markets of Worli and Prabhadevi remained very low.

The marginal small markets of Thane and Navi Mumbai have seen strong demand for office premises to shift focus towards these cost-effective locations.  Absorption was recorded at around 0.33 mn as compared to 0.20 mn in the previous quarter.