The rentals in central business districts (CBD) of New Delhi are likely to witness a 10-15 per cent rise by 2005 with the starting of the metro rail service, according to a real estate consulting firm.
"Rentals in the CBD are expected to increase in the range of 10-15 per cent by 2005-end with the commencement of the Delhi Metro Rail Corridor by June 2005 along the Barakhambha Road," consulting firm Knight Frank said in its latest market updates.
The rental values, however, would remain stable for the next six months at other prime locations.
At present, the Grade A office space commands rentals of Rs 80-110 per sq ft per month.
Out of the 100,000 sq ft Grade A space that has been leased in the last one year, over 45 per cent was leased by IT-ITeS companies, 32 per cent by corporates in oil, aviation and telecom sectors, while the remaining 23 per cent by companies in insurance and financial service sector.
On the satellite markets, it said infrastructure is still a major concern for the developers in Gurgaon.
"Major concern is being raised over the ever-increasing water problem in the region," it added.
Noida is likely to experience significant activity in the development of built-to-suit facilities while the lease rentals would remain stable.
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