"Rentals across office real estate markets showed a marginal average increase of six per cent over the last quarter coinciding with the increase in overall office supply," C&W said in its latest report.

According to the report, the first quarter witnessed a total office supply of 15.54 million sq ft, which constitutes about 19 per cent of the total expected supply for 2008 that is estimated at 82.8 million sq ft.

The rentals, in a substantial number of micro-markets across the major cities remained stagnant during January-March quarter of this year, while in certain suburban and peripheral locations it witnessed a slight decline, the report stated.

The stability and marginal decline can be attributed to the high price points already attained by most of the micro markets and the increased availability of ready options, the consultant said.

"There has certainly been a marginal slowdown in the rate of growth across all segments of real estate and its probably good news for the market to have some degree of correction, since the long-term demand continues to look robustly healthy and the next cycle could be more sustainable and strong," C&W India joint managing director Sanjay Dutt said.

However, the rentals in the Central Business District (CBD) locations continue to witness relatively higher growth.