Major and industrially flourished cities of India including Mumbai and Delhi are predicted to witness a delay in commercial property development
Two main metropolitan cities – Delhi and Mumbai that are touted as the hub of all kinds of activities in India and known for being highly ranked in costly commercial properties across the globe could not even save their property developers from postponing their projects. Though quite surprising, but, facts and figures point out to the fact that most of the commercial real estate projects are likely to be either stopped or postponed.
In the next few years down the line, no significant development of commercial property will emerge on the real estate surface of Mumbai and Delhi which once have seen havoc increase in property prices and rental rates. More precisely saying, while 212 million square feet commercial space was allotted to be developed into grade-A office space in cities including Mumbai, Delhi, Kolkata, Bangalore, Chennai and Pune, only 88 million square feet space is expected to be completed by the year 2010, according to sources from industry officials.
Studies have also revealed that demand supply ratio in these major cities for commercial properties will undergo pressure as well as the absorption rates in these places is likely to dip at the lowest point which has been measured around 60 percent in ensuing quarters.
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