Chennai office space demand may dip
The demand for office space in Chennai is expected to dip, with an expected slowdown in North American and European countries affecting the information technology sector.
The demand for office space in Chennai is expected to dip, with an expected slowdown in North American and European countries affecting the information technology sector.
The repo rate hike by the Reserve Bank of India (RBI) by 25 bps seems to have spoiled the festive spirit of the real estate sector.
With the US and European debt crisis affecting sentiments across the world, the Indian real estate sector is likely to see a gloomy phase in the next 12 months.
It is not slowdown for some of the realtors, while others are feeling the heat. If the signature projects of some of the developers are any indication, market is still good if you don’t have crisis of credibility.
In Mumbai sales registrations for July 2011 are down 31% to 5,047 as against 6,500 in July 2010, pointing to the continuing downtrend, said real estate analysts for Prabhudas Lilladher.
Several realty firms, including Parsvnath, Juventus Builders and Developers, Alok Infrastructure, Oval Developers, Airmid Developers and NG Realty have sought the Government’s nod to shelve their SEZ projects amid continued tax uncertainties.
ASK Property Investment Advisors, part of the financial services group ASK Group, has made a first close of its second real estate fund at Rs.520 crore.
It’s not just the residential real estate market in Mumbai that is going through a slump, the commercial office segment, too, is reeling under a slowdown.
While everybody, including the Finance Minister seems to be focussing on the affordable housing, the definition of the real estate at the bottom of the pyramid seems to be changing.
When a property dealer suggested Kartik Shah to set up his office at Navi Mumbai, instead of South Mumbai market, it seemed to be a sound business sense.