Commercial Property Rentals to Rise in the Coming Quarters
Rising property demand and improving economic environment are set to hike the rents across commercial real estate including office and retail segments over the next few quarters.
Managing Director of RICS, South Asia, Sachin Sandhir said the market is showing positive signs. It’s the first time since 2011 that occupier demand has overtaken the availability. What this means is that there is a significant demand for quality space in the market.
The Occupier Sentiment Index (OSI) has moved into positive territory at +7 after having registered seven consecutive negative readings. At the same time, demand for industrial space recorded a decline in this same period.
Just as the rents are expected to increase, transaction levels in the market are also expected to rise.
Chief Economist at RICS, Simon Rubinsohn said that the property market in India actually performed better than the rest of the BRICS counterparts, namely Brazil, Russia, and China. She also said the medium-term expectations and rent and capital value projections for the coming year are very strong.
Source: The Economic Times
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