The price of commercial property in New Delhi, which includes retail space as well as offices, has dropped 30% from its peak value in 2008 due to a glut in supply and weak demand over the past few years.
One-fifth of commercial space is currently vacant in India due to a slowdown in the economy, which has reduced the frequency of new businesses requiring space and existing ones expanding their premises.
Property consultancy JLL says that commercial property prices in Mumbai city have dropped by more than one-third (34.7%) from their 2008 peak, while those in the suburbs are down by 30.7%.
In Delhi, the price reduction is even more pronounced, with prices down by 38.7%. In Gurgagon’s Class B areas, buyers can commercial space at rates which are 39.3% less than in 2008.
In Noida, prices are down by 19.2%. Prices are also lower in Chennai (7.3%) and Pune (8.3%). The only market where prices have risen compared with 2008 is Bangalore, where prices increased by 0.2%.
Vivek Dahiya, chief executive of GenReal Property Advisors said recently that now is a good time to buy offices while prices are low. If businesses can’t buy, they should sign long-term leases, since prices and rents will only go up from this point.
