India Property Market by http://www.liveinstyle.in
India Property Market By http://www.liveinstyle.inSummaryProperty markets continue to gather momentum in all major markets of India. All major cities including Mumbai, Delhi, Bangalore and Chennai continue to attract interest to multinationals establishing base in these places or are looking for expansion. The nature of their business dictates that while the space off take is high, the values remain bound in the range of Rs.20 to Rs.40 per sq.ft. per month. Once again, driven by IT/ITES sector, it is the suburban locations Mumbai, Delhi, Bangalore and Chennai; that are witnessing development activity due to easier availability of land, construction of larger floor plates and offers of built-to suit facilities. On the residential front, prices are witnessing sustained upward pressure in most micro smarkets. It is true both in luxury segment, due to scarce availability and mid segment which is driven by lowered housing interest rates. This is leading to a bubble like situation in micro markets like Gurgaon which has seen as much as 20 to 30 rise in capital values over the last one year despite seemingly unending supply. In the wake of strong economic growth, real estate markets should continue to gain steam. This could result in falling vacancies in CBD areas and more developments in suburbs. It is unlikely that commercial property prices will go up significantly though residential capital values are likely to see sustained buying pressure in most markets.Commercial Market (6 Month) Price OutlookCBD SBD CBD Mumbai Commercial MarketSupplyThe Mumbai commercial market comprises the central business district (CBD) of Nariman Point in south and the suburban business districts (SBD) of Bandra-Kurla Complex (BKC), Andheri-Kurla Complex, Powai and Malad in the north. While no new supply is planned in CBD, the present vacancy rates are in the range of 20 to 22. It is expected that some renewed demand will arrest any increase in the vacancyin the CBD. Over the past few years, Mumbai suburbs have been witnessing an upsurge in commercial space supply. BKC has seenresurgence over the last quarter, however Andheri-Kurla has witnessed relatively lower level of construction activity than previous quarters.DemandIT / ITES companies have been driving the Mumbai commercial market - especially in the central and northern suburbs. Majority of the new demand in CBD is for the offices of companies that essentially need to be closer to the government offices, stock exchange and financial institutions.Capital
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