Global property consultants are presenting conflicting reports on India’s office space demand, creating confusion among industry experts regarding market trends.
Office space demand in India is projected to reach 30.5 million sq. ft. in 2013, a 12% year-over-year increase, driven by improving global economy, increased FDI, and revised repo rates.
Commercial real estate faces challenges due to a decline in office space absorption by IT firms across India's top eight cities. This slowdown impacts both demand and supply.
Mahanagar Telephone Nigam Limited (MTNL) plans to raise Rs.5000 Cr by divesting real estate assets in Delhi and Mumbai, enlisting global consultancy DTZ for support.
Commercial real estate demand rebounded in India during Q3 2012. Bangalore led office space absorption, followed by Hyderabad and Mumbai. Rental markets remained stable.
Hyderabad, Chennai, and Pune rank among the world's most affordable office locations, according to DTZ's 2011 report. Hong Kong, London, and Geneva top the list of most expensive markets.
Indian companies significantly reduced their commercial real estate occupancy in Mumbai, while MNCs increased their market share in the same period, according to a new report.
Real estate experts anticipate rising costs for home purchases and construction due to increased material prices and a 2% service tax hike, impacting buyers and developers alike.
Residential rents in India are rising by 10% due to high demand, low rental yields (3-6%), and high home loan interest rates (11-13%). Many potential buyers are delaying purchases, increasing rental demand.