Real estate graph heading North
In the SBD, rentals have witnessed a considerable increase of about 15-20% q-o-q and 50-70% y-o-y and is close to Rs 250 per square feet per month. In case of the satellite towns of Noida and Gurgaon—at about Rs 40-50 per square feet per month and Rs 100 per square feet per month, respectively—rentals have remained stable q-o-q and have increased by 30-40% y-o-y. Going forward, there could also be correction in certain NCR markets. For instance, in case of Noida the total commercial supply estimated in 2007 is about 5.6 million square feet. According to a report by real estate consultancy DTZ, “this is far in excess to the projected absorption of 3.3 million square feet and, hence rentals should fall or, at best, remain stable.”