With economy is marching ahead of its time, BSE has crossed 9000 mark and FDI door opened, there is new rising trend in purchase of commercial properties, all over the country.
By Staff Reporter
There is definite buoyancy in commercial properties in all the metropolitan cities in the country. The demand is still mainly from I.T companies, but newly opened insurance sector is also looking up to acquire commercial properties. The other major purchasers are from retail sector who are on the spree of opening of shopping malls in all the metro cities of India.
In Mumbai, the demand for commercial areas is shifting from south Mumbai to northern suburbs. The Central-Business-Districts of Bandra -Kurla and Andheri – Kurla are attracting corporates due to the availability of large floor spaces. In comparison, Andheri-Kurla stretch, specifically Marol and Sakinaka areas are getting more saturated with offices in industrial estates. Due to the static supply of commercial spaces in Mumbai, demand for new business districts is picking up. Worli-Prabhadevi areas in south Mumbai and Malad link road in north Mumbai are the latest destinations of commercial property development.
According to the latest report of real estate adviser Brooke International, commercial development in South Mumbai has reached saturation point and therefore prices will remain stable, despite the depreciation in value from the point of view of investors who feel that investing in these areas ensures a regular flow of income. This is primarily because it continues to be in demand from banking financial sectors.
Delhi, it seems have an edge over Mumbai in demand for the commercial property. According to IDC India’s opportunity index, Delhi has been rated as the city with highest market potential. Small and medium commercial spaces are much in demand. Connaught Place, the prime CBD of Delhi, has started to experience increasing activity in buying commercial spaces. The other areas where commercial spaces are being developed are Noida and Gurgaon. Both these areas are attracting corporates, small and medium enterprises, insurance companies and I T companies.
According to commercial property market review from Brooks International, the corporates with requirements above 5000 sq.ft. will consider Gurgaon as a viable real estate proposition, as the interior works of many offices are on the verge of being completed. Grade’A’ commercial space in Connaught Place and other areas in south Delhi are fetching Rs.160-165 per sq.ft. per month while in Gurgaon it is Rs. 73 per sq.ft. per month for ‘A’ grade space and Rs. 51.2 for ‘B’ grade spaces.
The other Metros like Bangalore, Chennai and other big cities namely Vizag, Coimbatore, Cochin, Madurai, Hyderabad, Chandigarh, Ludhiana, Jaipur, Kanpur, Lucknow, Varanasi and Bhopal are also witnessing increased sales of commercial properties.
In Bangalore, the demand for quality space in M.G Road, Brigade Road and Koramangla is very good according to real estate consultants. The on-going rates for properties in C.B.D. areas are ranging from Rs. 3000 to Rs. 5500 per sq.ft. Also, built-to-suit or pre-construction lease arrangements are in great demand. South Bangalore continues to be the most popular commercial location. The peripheral areas of Jayanagar, J.P Nagar, B.T.M layout, Banashankari et cetera are active in terms of commercial transactions. Lease transaction dominates the market activity.
In Hyderabad commercial spaces are being sold in Banjara Hills, Jubilee Hills and Prakasham Nagar, mostly to IT companies. The overall scenario in the country is most promising as far as commercial spaces are concerned.