Is limited supply in the office market space leading to high rentals? Market seems to indicate that commercial rental market is likely to peak anywhere between 5 and 12 per cent due to limited supply. Developers who have invested in commercial projects also said that they are seeing significant enquiries from prospective tenants with some of them sealing pre-commitment deals to offset a price.
“There is a short supply of commercial projects and we expect rents to move up by at least 10 per cent. Both investors and HNIs are investing in commercial properties,” Vipul Shah, MD, Parinee Group, told BusinessLine. The company said it has sold 1.5 lakh sq feet of the total 11 lakh sq ft in its upcoming Entertainment Project in Andheri. Commercial rents range from ₹50 to ₹150/sq ft depending on the location pan-India.
Ashish Shah, COO, Radius Developers, which counts Amazon and Cisco as its clients, said commercial rentals are expected to grow to the tune of 5-10 per cent.
Read more: The Hindu Business Line
