The trend of acquiring or renting out properties in suburbs, was mainly due to twin reasons of consolidation and rationalisation of occupancy costs, says a research report prepared by property consultants, Jones Lang LaSalle.

The popular suburban relocations in the metros are: Gurgoan in Delhi, Bandra-Kurla Complex in Mumbai, Whigfields in Bangalore and Old Mahabalipuram in Madras.

According to Colliers Jardine, in Mumbai, Citibank relocated its offices to Bandra-Kurla Complex from the leased premises at Nariman Point. Term-lending institution ICICI has also shifted its corporate office to the complex from Backbay Reclamation. Another FI, Industrial Development Bank of India, with itsheadquarters in Cuffe Parade, has also taken up a new office in the Bandra Kurla Complex. Others who are migrating to the complex are pharma major, Wockhardt, Alpic Finance and Gammon India.

"Consolidation of real-estate portfolios by multinationals and corporates, in a bid to rationalise occupancy costs, has been the key demand generator in most markets - whether in commercial, industrial or residential markets," says the report. The list of companies that shifted to Gurgoan near Delhi include Smithkline Beecham, British Airways (both acquired about 30,000 square feet each in suburbs) and BankAm. Coca-Cola is another MNC which has relocated its corporate office from Nehru Place in Delhi to DLF Plaza at Gurgoan acquiring about about one lakh square feet.

In Chennai, commercial-sale transactions in the central business district (CBD) area of Anna Salai and Nugambakkam have witnessed fall in values with companies preferring to relocate to outskirts like Old Mahabalipuram Road. Similarly, Mahindra Ford,Hyundai and Du Pont have shifted their offices from the city to the outskirts, Colliers Jardine said.

Bangalore also witnessed comparatively higher levels of activity in the secondary business districts, particularly on Infantry Road, Cunnigham Road and Richmond Road. The extended secondary CBD areas are popular with corporations looking for large independent facilities. Most of the transactions recorded originated from software and information technology companies, said the Jones Lang LaSalle report.

Commenting on the outlook for next year, the Jones Lang Lasalle report said land supply is expected to increase in Mumbai as a result of the proposed repeal of Urban Land Ceiling Regulation Act (ULCRA) and relocation of slums out of the inner city. However, Bangalore property prices are seen to be bottoming out with stability in values being seen in the last quarter of 1998-99. Demand has been adversely affected by the relocation decision of software companies to Hyderabad, due to lower real estate andmanpower costs as well as comparatively better infrastructure. ``However, market sentiments remain strong that prices will remain stable through 1999 and see an increase in 2000,'' the report predicted.

What has been the loss of Bangalore has been the gain of Hyderabad. The real estate market in Hyderabad has been quite buoyant over 1998, with the influx of a substantial number of corporate occupiers, mainly information technology companies and proactive government policies. Various government initiatives like enacting new building norms and simplification of municipal laws have helped the growing real estate market in Hyderabad.

However, in Chennai, real estate values stood stable with moderate transactions since the second quarter of 1998-99. The city has witnessed a correction last fiscal, though not to the extent as in Mumbai and Bangalore. The city continues to attract multinational corporations, largely due to the political stability and comparatively lower cost of real estate.