In Mumbai, while prices of prime offfice in the central business district of Nariman Point fell by over 8 per cent, the rental values continued to show "encouraging signs of revival", Colliers Jardine's property highlights January issue said.

A number of multi-nationals, Duetsche Bank, Credito Italino Bank, Commerz Bank, Rhone Poulenc, have signed mid-high budget leave-and-licence agreements in south and south central Mumbai.

In New Delhi, however, both the commercial and residential properties witnessed a fall in capital values. The central business district of Connaught Place remained weak with most landlords holding back selling at lower levels in anticipation of a revival. Rental ratesalso declined across the city, but lease-rental transcations remained buoyant.

Major rental transactions during the quarter were SimthKline Beecham re-locating to a 30,000-square feet facility at Gurgaon. BankAm and British Airways also relocated to Gurgaon to about the similar-sized facility.The existing congestion at the prime commercial centres of MG Road in Bangalore has led to a marginal weakening of capital values by 5 per cent to 8 per cent. Bangalore too witnessed a fall in rental values with dditional supply expected to materialise from the MG Road area. As a fallout of this, the rentals are expected to weaken by 5 per cent to 10 per cent as demand is likely to remain depressed.

The key rental transactions in Bangalore were of Bank of Scotia, which acquired 6,500 square feet of space at Shankar Narayan Towers at MG Road for Rs 75 per square foot per month. Dresdner Bank acquired 12,000 square feet at Raheja Chancery at Brigade road for Rs 45 per squre feet per month.In Chennai, both capitalvalues and rentals for commercial as well as residential property have fallen by nearly 6 to 8 per cent. Values in prime CBD areas like Anna Salai and Nungambakkam have furtheer weakened by 5 to 8 per cent and were in the range of Rs 2,500 to Rs 3,500The rental market here too continued to show signs of activity with major transcations being that of CitiCorp, which leased aproximatley 38,00 sq ft and 35,000 sq ft at Cathedral road for Rs 42 per sq ft per month. In another major deal, Satyam Computers leased out 30,000 sq ft at Teynampet at Anna Salai at Rs 30 per sq ft..