He felt that companies having high stakes in the property market should branch out into retailing or consultancy to stay afloat. "The sluggish market has increased the list of landlords, who are unable to repay the deposit of their tenants," he said, adding that there are several instances of landlords being asked to give bank guarantee on deposits.Wary of the increasing number of defaults by landlords, corporates have started demanding counter guarantees while entering into new lease agreements. Some have even gone a step ahead by offering to bear the associated cost of these guarantees, according to property-management firm, Cushman& Wakefield.

According to the firm, corporates favour a rental advance structure entailing a minimal deposit. With property prices reaching affordable levels, several land transactions were struck in May, 1998. Consumer giant Procter & Gamble bought 64,000 sq ft plot of Siemens located at Chakala (Andheri-east) for Rs 2,100 a sq ft.Another sale involved 17.5 lakh sq ft of Hoechst Marrion Roussel to Nicholas Piramal at a bargain price of Rs 115 a sq ft. Tata Consultancy Services purchased 2,500 sq ft in Nirmal at Nariman Point at rates ranging Rs 9,900 a sq ft to Rs 12,500 a sq ft. TCS, currently, occupies around 10,000 sq ft in the same building.Apple Housing sold its two offices (admeasuring 2,110 sq ft and 3,750 sq ft) at Amerchand Mansion on Madame Cama Road to Powergen at Rs 13,500 a sq ft and Rs 14,500 a sq ft respectively.According to Cushman & Wakefield, leasing activity remained buoyant with JP Morgan committing to around 15,000 sq ft in Voltas House, Ballard Estate. A multinational bank alsoleased 910 sq ft built-up area in Maker Chamber VI, Nariman Point, for Rs 170 a sq ft payable biannually in advance, in addition to 6 months rental as deposit.Residential transactions in May 1998 comprised approximately 54 per cent of the total transaction during the month. Around 75 per cent of the these transactions were recorded in the prime South Mumbai precinct, encompassing areas from Cuffe Parad to Peddar Road. Some of the important transactions included two at Maker Tower A, Cuffe Parade. The premises were sold for Rs 13,700 a sq ft and Rs 15,700 a sq ft. A sale at Pleasant Palace, Nayarayan Dabolkar Road, went for Rs 16,400 a sq ft, while another transaction at Pushpak Apartments, Altamount Road, was struck at Rs 14,700 a sq ft. In another transaction at Peddar Road (Sangam building) the deal was struck at Rs 11,400 a sq ft.Transactions in the central suburbs included a penthouse in the partially completed Kalpataru Heights, near Mumbai Central, for Rs 11,500 a sq ft; Venus at Worli went for Rs12,000 a sq ft and Lotus Court at Dr Annie Besant Road went for Rs 8,700 a sq ft.In north Mumbai, two transactions were recorded at Pali Hill, Bandra. These two apartments at Land Breeze and Blooming Heights went for Rs 7,700 a sq ft and Rs 14,400 a sq ft. The flat at Silver Sands at Juhu Tara Road was sold at the rate of Rs 8,800 a sq ft.