Commercial rentals in Indore drop 15% during pandemic | News from Indoré

INDORE: Commercial property rentals in Indore, a leading business center in the state, have fallen by around 15% from pre-Covid-19 times due to a drop in the demand and the reduction in office space requirements in the event of a pandemic.
In the commercial real estate sector, office space has suffered the biggest drops in demand and rentals due to the work-from-home policy adopted by many businesses following the coronavirus-induced lockdown.
According to real estate agents, at least 20% of commercial property, mostly office space, is labeled as vacant in the event of a pandemic, while retail commercial spaces, including showrooms and stores, are stuck in negotiations with landlords over rent waiver for the foreclosure period.
Commercial real estate agent Bhoopendra Joshi said: “Commercial property rentals have fallen by at least 15% in the event of a pandemic as demand is very limited. There are negligible new customers in the rental market. Offices are liquidating sprawling spaces and have suspended expansions. ”
According to brokers, average rentals in the retail segment in Indore are between Rs 150-200 per square foot on the carpet area, while office space is offered at Rs 45-60 per m² on the area. carpet surface.
Indore Realtors Welfare Association President Arvind Gupta said: “About 25% of people have moved out of rental property due to the coronavirus forced foreclosure. Homeowners are willing to offer property at lower rates because bank debts are intact on them. But customers are in standby and watch mode, worried about an uncertain lockdown that can be imposed at any time. ”
In Indore, the most popular locations for commercial properties are AB Road, MG Road and Sapna Sangeeta, estate agents said.
Real estate brokers said several showrooms and stores were in default of paying rents in the event of a pandemic and that the new agreements impose an additional condition of either waiving rent for the foreclosure period or 50% of the rent. rent for the impact period.
Real estate agent Vinod Verma said: “Most of the new agreements signed these days have an additional condition for the foreclosure period, as agreed by both parties to avoid defaults.”

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