Call it recession or an oversupplied market (in terms of office space), or the general
negative sentiment prevailing in the market, office
real estate hit an all time low with
values nearly bottoming out as compared to its peak around 8-12 months ago, in fact, the commercial real estate values dropped by an average of 25% in all markets and touched 50% in some.
The transactions were few and far between as majority of the corporates postponed their business expansion plan and were downsizing, as most were not sure if they would be able to sustain themselves, leave alone embark upon any expansion plans, while those who were earlier looking at expansion/relocation fell in a wait-and-watch mode, in anticipation of further correction.
Giving a sense of the depreciation in commercial real estate values, specifically office space, Arjun Kumar, director of AsiaPac International India says, “Commercial and IT space has witnessed almost 40-50% correction compared to rates 6-8 months ago, across NCR.”
More : economictimes.indiatimes.com
Send an E-Mail for Noida Property Enquiry!
Related News from Noida
Recovery in realty mart: Will it last?
While there are visible signs of a recovery in the real estate market, price hikes by developers and any increase in interest rates could halt this momentum, writes Ram Prasad Sahu. The realty sector, which was the worst affected by the downturn last year, seems to be exhibiting early signs of a recovery. Price cuts on projects over the last six months and healthy pre-sales during the festive season seems to suggest that demand, which had all but disappeared in the third and fourth quarter of 2008-09, seems to be trickling back. Developers are tweaking their business model by launching smaller apartment sizes
Surge in demand for office space good for economy
The real estate market has shown a clear sign of revival following the formation of Congress-led UPA government with a clear majority at the Centre. Apart from the affordable housing sector, which has witnessed a surge in demand, office space too has registered fresh demand, which was almost dormant for last one year, ever since the global economy went into a tailspin. Commenting on the latest biometrics of the real estate sector in the country, Anshuman Magazine of CB Richard Ellis (South Asia) said, In the 1st quarter of 2009, confidence and sentiment was low in the real estate market.
Corporate space: It is time to bounce back
Call it the domino effect - after residential property market got into a recovery mode, the nation's commercial property segment has also started showing signs of revival, driven by a spurt in office space and retail sectors. Neeraj Bansal, associate director (advisory services) at KPMG, says, "Commercial real estate transactions, considered a key indicator of economic activity, are now showing some signs of movement in the real estate sector since the end of the 2nd quarter. The confidence and sentiment, relatively low in the first quarter of 2009, has improved after the formation of a new government, thereby contributing to
Oversupply of office space leads to high vacancy levels in Noida
Commercial space in Delhis suburb of Noida isnt filling up as fast as it did previously, bucking the trend in the National Capital Region. According to a report by a real-estate consultant, rampant building has created an oversupply in the market. For the first time since 2004, Noida has recorded a high vacancy level of 26.2% for its Grade A commercial buildings, or top-end office space, in the first quarter of 2007. This is a sharp jump from the vacancy level of 6% in the fourth quarter of 2006, which is pretty much fully occupied in real-estate terms. The high vacancy
Bahrain real estate firm acquires 49% stake in Noida IT park
Bahrain-based real estate firm Acacia Real Estate acquired 49% stake in Logix TechnoPark, Noida for USD 69 million, report agency sources. Acacia Real Estate is a company spearheaded by Bahrain-based TAIB Bank, which is also the exclusive placement agent for the project. The park consists of four newly built 100% occupied office towers with a total gross leasable area of 461,120 sq ft. Source : myiris.com
Present downturn in real estate a temporary blip
The persistence of inflationary pressure in the market will further affect the recovery in the real estate sector. As the government measures to improve supplies of essential commodities , so far, have had limited impact on controlling prices, RBI is likely to further take harsh measures to push the interest rates up on July 29 when it review its credit policy. Because of the central banks monetary measures taken so far to contain inflation, the interest rates on home loan have gone up by 2 percentage points - to over 12% in the last one year. Prior to this, the
Real estate agent
Real estate agent is a location in Noida in India. If you have seen Real estate agent , then write us a review comment or your experience about this site in Noida. This site is to provide information to visitors to this place. Your comment about Real estate agent is important to us. Please provide you comment / review / article on Real estate agent in Noida below.