Corporates are relocating their headquarters to larger offices as rental prices decline in major cities like Bangalore and Mumbai, seeking better amenities.
The recent terrorist attacks in Mumbai are expected to further depress property prices, especially in South Mumbai, affecting both sales and rentals.
India's office space absorption dropped 41% in the first three quarters of 2008 due to the global economic slowdown, impacting office rentals.
Pune's rental costs for software companies have surged, raising concerns about its cost advantage in attracting investment as noted by industry leaders.
Despite a real estate slowdown, land deals in India thrived in Q1 2008, reaching Rs 23,000 crore, with another Rs 10,000 crore in the pipeline.
Rentals in the National Capital Region are anticipated to stabilize due to increased supply in Gurgaon and Noida, with no major changes expected in Delhi.