India to see good recovery
Modest rise in tenant demand and lettings activity indicate possible strengthening of rentals in future, according to the latest RICS Global Commercial Property Survey (GCPS).
The RICS Survey is a quarterly guide to the developing trends in the commercial property investment and occupier market.
This edition of the survey details market conditions for the second quarter of 2010 based on information collected from leading international real estate organisations and local firms. RICS is a self-regulatory professional body for receiving qualifications and standards for land, property, construction and associated environment issues.
Real estate performance in emerging markets such as South America and Asia is far better than in more developed countries, the survey indicated.
Rents continue to fall in 30 of the 46 countries surveyed, while the available space continues to increase in eight out of 10 countries, it may be pointed out.
Bangalore market
And what about the real estate market in Bangalore? “The market is trying to shrug off its sluggish temperament and is already showing healthier square feet values this quarter,” says Jaishankar of the Brigade Group.
Brigade bringing in the World Trade Center is by itself a boost to the city, feel observers. “With the emerging rail network and the local government's projects along with JNNURM, and the slow recovery seen in world recession, the real estate market here will see better days,” he says.
Commenting on the market environment in India, RICS member Chetan D. Narain says, “The commercial rental market has taken a beating due to no major growth plans by corporates.
"A lot would depend on how the overall economy grows and if changes in policies bring in more foreign entrants (money), commercial real estate may see better days.”
With respect to commercial rents (in Q-3 2010) India ranked sixth highest amongst 46 countries, while confidence towards capital values too was relatively strong. Investment activity in India, the survey says, was relatively lower, as compared to other countries, implying that other countries offer better investment returns.
RANJANI GOVIND
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