In future, while rentals at Nariman Point are expected to remain strong, areas like Lower Parel (with new supply from mill land development), Bandra Kurla Complex, Andheri and Malad are likely to see rentals stabilise by quarter 2 or 3 of 2008 because of fresh supply. “By the second half of 2008, both in the NCR and in Mumbai, supply of IT-ITeS space located within SEZs will also start coming into the market — putting pressure on rentals,” said Gupta.

The bottomline: corporates looking to expand within the NCR should bargain hard for better deals as the demand-supply dynamic has swung in their favour. In Mumbai, by postponing their expansion plans for a while, corporates should be able to land themselves a better deal.

Realty roller coaster

Place:Rate*

Delhi CBD-Prime:317

Delhi CBD-Others:210

South Delhi-Prime:217

S Delhi-Micro mkts:159

Gurgaon-Prime:113

Noida:50

Central (Worli):400

Central (Lower Parel):295

Suburban (Andheri):165

Suburban (Powai):100

Suburban (Malad):69

Sub (Bandra-Kurla):335

South Mumbai

CBD-Nariman Point:400

(* In Rs per sq ft per month)

Source: Cushman & Wakefield Research