The rise in the interest rates is likely to affect real estate sector growth in the country. In a report, global real estate consultancy firm CB Richard Ellis said with demand going down, both the capital as well as rental value of office space have come under pressure.
According to the report, the global economic conditions seemed to have affected plans of the companies, with some of them deferring their real estate decisions. Under such condition, the excess supply of office space is likely to affect the market values in the coming quarters.
In the Gurgaon market of National Capital region, the report said, rentals of office space have undergone 5-8% correction from their peak rates in January-March 2008 quarter due to increased supply and softening of demand. The rentals of grade B building in secondary market like Nehru Place is down from Rs 200 per sq ft per month to Rs 150 per sq ft per month. In Gurgaon, it has fallen from Rs 105 per sq ft per month to Rs 95 per sq ft per month.
More : timesofindia.indiatimes.com
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