Commercial Property: Prices are Likely to Have Stabilized

February 14, 2007	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

Rentals for commercial spaces in major places like Delhi-NCR, Bangalore, Mumbai, Chennai, Hyderabad, Pune, and Kolkata are expected to become stagnant by 2010, says a report by international property consultant Trammell Crow Meghraj. However, the statement seems to contradict the present scenario in which commercial real estate prices are going through the rooftop.

The demand for IT spaces is increasing rapidly and the trend looks to pushing down the supply to an extreme low level. Property developers have drawn up the plans to bring in space to the tune of 20 million sq. ft. by 2010. Of this, 12 million sq. ft. will be located within IT SEZs being constructed by bug names in Indian real estate. The list includes the names like DLF, Unitech, and RIL.

Present office rentals in Delhi and its suburbs will ease once the supply hits the market in the medium term, says the report which hints towards growth of corporates and businesses.

Rents in Mumbai have shot up with marking a hike of 180 per cent—from Rs. 50 per q. ft. per month in the year 2004 to Rs. 140 in 2006. Adding to the trend are the rent values in the Capital, from Rs. 60 per sq ft per month to Rs.120, over the same period.

India has certainly emerged as one of the most sought after destinations for IT and ITeS. However, the cost of real estate requires stabilizing a little to uphold the demand across the country.

News Published Under:   Real Estate India |

Comments