Office space rentals have appreciated in Bengaluru and Gurgaon, while remaining stable in Mumbai.

Noida’s information technology segment saw a marginal rise.

Corporates were seen pre-committing space in under-construction developments in three cities — Bengaluru, Gurgaon and Mumbai — due to the limited availability of investment-grade space at prime locations, said Ram Chandnani, Managing Director-Transaction Services, CBRE South Asia.

Bengaluru office rentals witnessed an increase of 2-6 per cent q-o-q across non-IT spaces in certain micro-markets during the January-March quarter.

Chandnani said sustained demand led to marginal rental appreciation across South Bengaluru and areas of Indira Nagar, Koramangala, Old Madras Road, Domlur and CV Raman Nagar.

The rise in rentals in Gurgaon was led by DLF Cyber City and Golf Course Road. Noida too witnessed a marginal appreciation in rentals the IT segment, led by high demand for space in certain quality developments along the Expressway.

In other micro-markets of the region, however, rental values remained largely stable.

According to Chandnani, in Mumbai, rental values of corporate real estate across remained largely stable during the first quarter of 2016, with a marginal increase in certain office districts.

The peripheral locations of Malad/Goregaon in the Western Suburbs were the exceptions that noted a slight quarterly increase due to increased occupier demand in quality IT projects.

Meanwhile, the city recorded capital value growth for non-IT space across most front office space locations in the first-quarter, said Chandnani.

“As seen in past years, the first-quarter of the year usually witnesses muted transaction activity as most corporate real estate occupiers’ use this time to strategise their plans for the year ahead,” said Chandnani.

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