Recovery in information technology and related services and financial services has contributed to increased offtake of commercial office space in Mumbai, according to Knight Frank Research.The property consultant's study says offtake of commercial office space in the three quarters of 2010-2011 has exceeded that of the previous whole year. The comparative figures are: Up to December 2010, a total of 6.83 million sq.ft (6.68 million sq.ft) of office space was transacted, with 76 per cent being lease transactions and the balance sales. The average monthly leasing rate for the year was Rs 95 a sq.ft (Rs 105) and average sale price Rs 14,000 a sq.ft (Rs 13,000).

The sentiment in the commercial office market was not positive in 2009 due to a slump in demand attributed to the crisis in global markets. The delay in expansion plans by many BFSI (banking, financial services and insurance) and IT/ITeS companies, the principal drivers for commercial office demand hit the overall office market. Lower demand along with a large upcoming supply led to a significant drop in rental values from the second quarter of 2008-09 to the third quarter of 2009-10, which stabilised only recently. More than 60 per cent of the transactions for both years were concluded by the BFSI and the IT/ITeS sectors.

Nitco enters real estate business

Nitco Ltd, flooring and interior aesthetics solutions provider, has entered the real estate market with the inauguration of its first premium project — Nitco Biz Park. The commercial property in Thaneis designed and developed by Nitco Realties Pvt Ltd, a subsidiary of the Nitco Group. According to a press release from the company, the Rs 120-crore business park is a six-storey building and spread over 2 lakh sq ft with a landscaped atrium rising three floors high. The environment-friendly building is equipped with modern amenities such as hi-tech security surveillance systems, dedicated security control room, and an Intelligent Building Management Systems (IBMS) with 100 per cent power backup Mr Vivek Talwar, Managing Director Nitco Tiles said in the release, “As a company closely associated with real estate for years, this marks our entry into the sector in Mumbai. The group has the expertise and significant land holdings, which it will consolidate in the immediate future. We have been strategically developing this line of business which will soon add immense value to all our shareholders.” Thane has transformed into a fast growing business and commercial hub. The company's focus will be on developing niche and ‘next level developments.' Nitco Biz Park is pre-certified as LEED (Leadership in Energy, Environment and Design) certified building.

feedback to >blproperty@thehindu.co.in

Related Topics
comment COMMENT NOW