'India added more than 55 mn sq ft of office space in 2010'
Mumbai will lead the Indian office supply market with more than 25% share in the year 2011-2012, according to CB Richard Ellis India with Bangalore and NCR following at 19% and 17% market share respectively. According to a real estate market overview and outlook presented by CB Richard Ellis India, the country added approximately 55 million sq.ft. of office space in 2010 and is expected to add approximately 50 million in 2011-12. Additionally, real estate transactions which were on the rise in 2010, post the downturn in 2009, will continue to increase in 2011 as well.
According to Anshuman Magazine, Chairman and Managing Director, CB Richard Ellis South Asia Pvt. Ltd , "The overall real estate performance of the country has been on an upward trend with increasing transaction volumes. This is due to sustained IT industry activity, impact of economic recovery on new economy sectors, global optimism on corporate expansion, consumer confidence and a rise in income levels. Additionally absorption rates might increase in commercial and retail assets, due to substantial transaction activity aided by strong economic expansion. However, the residential segment might witness reduced absorption due to significant price increase in prime metro micro markets, large supply and an increase in mortgage rates."
In the coming year, prices will witness an upward trend in commercial and retail rentals in the CBD (Central Business Districts) and prime city districts. The suburbs, however, will witness marginal appreciation or stability in prices.
In the retail segment the total number of malls in India are expected to be more than 200, while another 80-90 are lined up to get operational in the next 2 years . Retailers/ tenants will continue to hold sway in certain oversupplied locations, pressing developers for revenue share and related incentives. Rents on the other hand have headed towards stability post 2009 and have witnessed an average depreciation of 30-40% from peak in second half of 2008 till mid 2010, across cities.
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