Commercial real estate demand going down
Analysts said that demand for commercial real estate has dropped around 30 per cent in the past year, due to general economic slowdown.
Office rentals witnessed 15 per cent decline in rentals across many locations. In some cases it has come down by as much as 50 per cent.
Credit to the commercial real estate (CRE) sector grew by just four per cent during June, down from 23.2 per cent in June 2011 In the first quarter of 2012-13, industrial production contracted 0.1 per cent, while exports and imports contracted 1.7 per cent and 6.1 per cent, respectively.
The economic slowdown has deterred many developers from venturing into commercial sector. Even DLF Ltd, the country’s largest real estate developer, stated that its focus is only on high-end residential projects and plots as it did not make sense to concentrate on commercial sector in d midst of an economic slowdown.
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