New Delhi:

Rents for office space are seen stable in 2010 as increased spending by IT and ITES firms absorbs space put out over the last few quarters, a recent survey by real estate consulting firm C B Richard Ellis showed.

The market for commercial space in major Indian cities has seen a boost in demand in the March quarter even as rents remain hobbled by excess supply.

“I don’t expect rentals moving up in the near future. The supply is enough, although the market has picked up and office take-up has improved,” Anshuman Magazine, Chairman of C.B. Richard Ellis (South Asia) told Reuters.

“It will take time before we see any upward movement in rentals.”

The rental values in the central business district of New Delhi appreciated by 4 percent over the previous quarter while remaining flat in Mumbai, Chennai, Hyderabad and Pune according to the report.

The study across seven major cities forecast rents to remain stable overall while they may ease up in New Delhi and Bangalore due to supply beating demand.

Telecom, FMCG and pharma companies are also taking up office space, even as the IT-ITES sector which is seeing rising demand continues to be the major occupier.

“Unlike last year, the last quarter of 2009 onwards we have seen demand improving, absorption taking place and there is a momentum in the market,” Magazine said.

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