Office rental prices are unlikely to see any major fall across the country’s three major business hubs National Capital Region, Mumbai and Bangalore even as the commercial realty markets in these areas are expected to witness a significant surge in supply, a leading real estate consultancy firm said.
While Bangalore is expected to witness further rise in the average office rentals, those in Delhi and adjoining areas like Gurgaon and Noida as well as Mumbai are expected to remain mostly flat in the short to medium term, CBRE said in its latest office market review for Asia-Pacific region.
Only certain small pockets in National Capital Region (NCR) and Bangalore could see a correction in prices in the near future, while any downward correction is very unlikely across Mumbai region, it said.
“The National Capital Region (Gurgaon and Noida) is expected to witness flattening trend in rentals over the short to medium-term,” CBRE said.
“However, some micro-markets with forthcoming supply is likely to experience a marginal value correction in the next six months,” it said, adding there would be significant additional supply in Gurgaon, Noida and Jasola in South Delhi.
CBRE noted that in preparation for hosting the Commonwealth Games in 2010, rigorous efforts have been made to improve infrastructure all across the NCR.
For Mumbai it said, that with over one million square feet of corporate office supply currently available and another nine million square feet ordinary office space expected to come online in the next two quarters, rental values are likely to remain stagnant.
MPC Energy Buys Equity In Phoenix Mills SPVs
MPC Energy, a JV between Germany-based MPC Capital and Switzerland-based Synergy Asset Management, has invested Rs 1,300 Crore in the purchase of equity in special purpose vehicles floated by Phoenix Mills, a real estate developer. 70% of the investment is expected to be used for fifteen projects that are in development stages, while the remaining 30% will be used for six additional projects that are in the pipeline.
The purchased equity stakes that range from 10% to 49% in value will be picked up 21 projects promoted by Phoenix Mills and its subsidiaries, Entertainment World Developers and Big Apple. Each project is foreign direct investment (FDI) compliant and a separate corporate identity (SPV). The developments will be located in tier I and II cities like Mumbai, Chennai, Bengaluru, Jabalpur, Udaipur, Raipur, Chandigarh, Pune and Indore.