With a total GFA of 10,465 sm, the unit rate reached HK$7,645 psm. Only a few leasing deals were transacted in the quarter at an average monthly rent of HK$130 psm to HK$160 psm. The demand for storage space is expected to shrink in the near future due to the gloomy industrial sector and export industry. Property valuation controls This is due to the recessionary trends in the country and the shadow of the ongoing war. The bearish sentiment in the stock market is having an impact on the property market.
On the one hand, several stock brokers and organisations from the financial sector have stalled their expansion plans, while on the other hand individual investors and institutions have started investing in property as a defense against possible capital erosion in the stock markets. Following the terrorist attacks in the US, companies such as America Online have postponed their entry into the Indian market. Also various tourism related companies have stalled their expansion plans. However, the Telecom, Insurance and Pharmaceutical sectors continue to generate good demand in the country.
Occupancy rates in these alternative locations have improved. Bharti Broadband purchased 2,322 sm located in Malad and Bharti Telecom purchased 2,787 sm in Parel. These transactions have taken place at Rs. 3,680 and 57,049/sm respectively.
IBM has leased 5,574 sm in Bandra Kurla Complex while Orange has taken up approximately 9,290 sm at Peninsula Chambers in Lower Parel at a rental rate of Rs.237/sm per month. Rental rates remain firm, while yields are improving, thereby attracting investors in the form of Financial Institutions, high net worth individuals and trusts.
The inflow of supply from new projects has reduced as most developers await the filling up of any unoccupied developments. Meanwhile, the Tata Group is nearing completion of the second phase of their premium development, Technopolis, in Andheri (East). This will bring in approximately 5,570 sm of quality supply into the market. Also 18,580 sm of quality space at Mindspace, Malad will be released by December 2001.