Rental cost of commercial property in India is increasing
It is recorded that the rate of rent of commercial and office space in India is increasing rapidly. Firming occupier demand is seeing rental expectations turning positive this quarter as opposed to the negative trend during the last three months of 2011.
Market activity indicates that rental value for retail properties has seen an increase in 2012, while supply of other retail space such as malls is also on the rise.
The commercial markets are reasonably buoyant as there is a fairly good absorption of office space at attractive values local companies and multinational companies are expanding,
Commercial property market in India has emerged as the most expensive office market destination in India at the end March quarter.
In a report it is noted that a shortfall of quality space in the micro-market ensures that any new supply or vacancy in quality office space in the Indian office space gets absorbed at a premium, thereby pushing the rental values up.
The industry body, National Real Estate Development Council, said they hope to see a turnaround soon, adding that the Securities and Exchange Board of India`s new alternative-investment-fund regulation may bring in new investors.
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Source: My Iris
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