May 20, 2014
Rentals for office and retail spaces in India are expected to increase in the coming quarters on the back of rising demand, according to a survey by Royal Institution of Chartered Surveyors (RICS), a global body for setting standards in the property sector.
Demand for office and retail spaces rose during the quarter ended March.
“There are positive indicators in the market. The occupier demand for the first time since 2011 has outpaced the rise in availability (though marginally). This means that there is healthy demand for quality space in the market,” RICS South Asia managing director Sachin Sandhir said in a statement.
Rents have bottomed out over the past few quarters that they are expected to rise from these levels.
“Driven by demand across office and retail segments, rents across commercial real estate are expected to witness a hike over the coming quarters across all segments on account improving economic environment,” RICS said in the India Commercial Survey for first quarter of 2014.
The report said that capital values are expected to remain broadly stable in the coming quarter.
“The Indian economy is gradually recovering and showing signs of stability. The recent monetary policy measures undertaken by the Reserve Bank of India (RBI) has improved the course of recovery. As widely perceived, it is likely that the stable government at the centre will help the industry to bring back reforms for the real estate sector,” RICS said.