Commercial Property Rates

Mumbai, January 13 real estate developers fear 30% to 50% increase in prices and demand for property in Mumbai, Pune, Nasik, Chennai and Bangalore, compared to the constant demand balance and prices Delhi and the NCR region from March 2008.

According to industry experts, with Indiabulls (14 lakh sq commercial and retail) and Peninsula II (5 lakh square feet) buildings under construction in Lower Parel in Mumbai, the demand for residential properties should increase by 30 % compared to March 2008. While Indiabulls property is expected to be operational this

year with a parking space for 3,500 vehicles, Peninsula II properties will be completed next year.

According to Abhinandan Lodha, director, Lodha Group, "The commercial property rates in Mumbai are expected to increase by approximately 50% premium over the buildings being built. In addition, India is becoming a destination leading to warmer premium commercial establishments where builders would put in place very large number of commercial buildings located in one place. "

property prices has already touched the roof since the past two years when the booking for Ashoka Towers started at Rs 4,000 per square foot but now prices have skyrocketed by additional Rs 18,000 per sq ft. In Consequently, home buyers have started eyeing Pune, Nasik, Chennai for the creation of a second home instead of buying a second home in Mumbai for the weekend.

It is also because of the requirement of 90 lakh houses in Mumbai, only 30% of homes have been built so far. For example, investors have purchased apartments in many Kharghar, where 70% of buyers have not yet lived.

In Chennai and Bangalore, two-income families have started spending more on programs on the purchase of large homes. Although currently Chennai is not considered a very active property destination, with mixed used development under construction by Hirco (15 mn sqm), Chennai will also see boost in prices and demand as well. In addition, there is already overbuilding happening in Bangalore. Therefore, the demand is huge. Instead, the NCR region and Delhi has already seen developments of this size.