Real estate agent Ram Sakhrani says residential renting has dropped 25 to 30% over the past couple of months and is expected to dip further. "The largest impact has been during the past one month, with the demand diminishing. Moreover, banks, which were one of the main clients, have slashed their budgets. Also, demand has dropped because many people have lost their jobs in financial institutions,'' he says.

In Cuffe Parade's posh Maker Tower, a standard 3,000 sq ft apartment, which used to fetch a rent of Rs 7.5 lakh a month, can now be had for Rs 5 lakh. Similarly, in Persepolis, near President hotel, a two-and-a-half bedroom flat, which would generally command a monthly rent of Rs 1.75 lakh, is today bringing in Rs 1.35 lakh, claims Sakhrani.

Another source says the exclusive NCPA building at Nariman Point has also witnessed a softening of rates. A 4-BHK would earlier fetch a rent of Rs 8 lakh a month. Now, this has reduced to Rs 6 lakh. "Earlier, there were a slew of clients for NCPA flats. Today, no-one is waiting in queue,'' says the source.

Chetan Narian, president and CEO of Narain Corp, a real estate consultancy firm, says, "Rental prices with the shortest life-span were the ones in the upswing. While capital values went up by 300%-plus from 2005 to mid-2008, rents only went up from around March 2007 and this ride lasted till June 2008. A few owners got lucky signing deals at higher rents. Since then, rents have remained stagnant or have been corrected in many places by 10%, leaving room for a correction of 15% and a fall of maybe another 15%.''