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India Ranks 9th Globally for Office Space Demand, says RICS

India ranks ninth in fourth quarter of 2012 as compared to the nineteenth in the third quarter of the same period in terms of occupier demand and available commercial real estate space in the country, according to RICS’ global commercial property survey.

However, India still lags behind Thailand, Hong Kong and China on these parameters, as was the case the previous quarter but it improved its performance over Japan.

“Asia appears to remain a particularly attractive location for investors seeking out commercial real estate assets with sentiment still strongly positive,” Simon Rubinsohn, RICS chief economist, said.

The better pattern for realty markets in the country is visible in the investment market, which is also starting to filter through to the occupier side as well. Investment enquiries in India edged up and elicited a positive trend for the first time since 2011, the report mentioned.

During the last quarter of 2012, enquires for the office segment has been the most pronounced with both investment activity and prices looking to be positive for the second consecutive quarter.

“There should be an increase in demand for commercial real estate and increased investor confidence, as presently there is a mismatch in lease rates and capital values. All this would motivate developers to build quality shopping centers with a clear vision to long term profit.”” Mohit Verma, MRICS general manager – sales and leasing (Commercial), Raheja Developers said.

Separately, demand for distressed assets rose at a slightly slower pace in Q4 as compared to Q3 and Q2 with India ranking 16 as compared to 17 in Q3 and 12 in Q2. “It is also heartening to see that the level of distressed properties in the country is now looking to stabilize. While the supply of such properties is expected to continue rising in the early part of 2013, the pace will be a lot more modest than has been the case in the recent past,” the RICS report mentioned.

Via : ET


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