Commercial Real Estate Market
Commercial real estate market which had seen a slump for most of last year because of economic slowdown, is showing signs of a revival, although growth is nowhere near as compare to 2007 yet. Some big corporates have entered lease deals for top-level office space of late, but at lower rates. Last month, one big Mnc took 1.7 lakh square feet (sq ft) on lease at Gurgaon and Noida. Many other international firms are in talks for similar deals. DLF, the largest developer according to market capitalisation, leased 2.1 lakh sq ft last month across the country. Industry experts says Leases are happening but the market has not fully recovered but they expects demand to pick up from the third quarter of the fiscal. At present, there is a lot more supply than demand and thus pressure on value remains. But if there is a pick-up in demand owing to lower rentals, there could be a shortage of top-grade commercial space as most of the developers have altered their commercial development plans into residential in slowdown time.