subject: REVIVAL IN DEMAND [print this page] Over the past quarter, the office real estate market has shown an uptrend in terms of level of enquiries, which, more positively, has also resulted in enhanced number of deals, said a CB Richard Ellis report on office market in India. It said whilst the IT/ ITeS sector has been slower to get onto the recovery path, corporate office space take-up has been quite encouraging. Financial institution, FMCG and Telecom sectors have all contributed to the revival in the demand. The report said that though the volumes are still on a lower end of the spectrum, markets are not as moribund as they were at the beginning of the year. As supply has overtaken demand facilitating increased competition, better quality developments are attracting demand. The positive aspect of the current development is that the issue of quality is coming to the forefront. This is encouraging for the real estate sector as a whole with commitment to quality finally getting its due rewards, the report said. Commenting on the findings of the report, Anshuman Magazine, Chairman & MD, CB Richard Ellis, South Asia Since the 3rd quarter of 2009, the office segment has seen some movement with corporates slowly returning to the market and office space take-up improving. In 2010, demand is expected to improve though rentals are expected to remain flat in medium term due to large supply of office space. All the seven cities Mumbai, NCR, Bangalore, Chennai, Hyderabad, Kolkata and Pune witnessed improved levels of activity in the office sector. The rentals in the central business district of NCR, Bangalore, Hyderabad and Kolkata remained constant; whereas in Mumbai and Chennai the rentals dropped by 3% and in Pune by 5% owing to limited leasing activity. Recessionary times also made most developers shift their focus towards affordable housing, which has received a positive response from the investor and end user market alike, the report said. It further said that 2010 brings hope of a new and fresh start; and activity levels in the market are expected to continue. Year 2009 started on a sour note for the residential, retail and office segments. Office demand saw a substantial drop which triggered a decline in rentals and postponement & cancellation of projects. Courtesy:- Times Property dt:- 16-01-2010
REVIVAL IN DEMAND
By: zameensapna
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