COMMERCIAL REAL ESTATE

The commercial aspect of India has come of age. With the retail boom and increasing return on investment in the commercial real estate market, the value of property in Delhi and NCR have grown by leaps and bounds.

Real estate in India and especially properties in Delhi has come up in a big way. Particularly, in the commercial areas, where the local retail shops and shopping complexes have been replaced by huge and swanky malls.

Even the average Indian consumers, especially the middle income group, are getting a taste of high class luxury through posh malls which are developed in and around Delhi and are built as per international standards, much on the lines of Singapore and Dubai.

Today Delhi and NCR takes pride in more than 150 shopping arcades and megalomaniac malls. As per global estimates, more than 36.2 million square feet of land in Delhi would be covered by shopping malls by the end of 2008, with a whopping 60% concentrated in Delhi.

The Indian warehousing sector will be worth $55 billion by 2010-11 with around 45 million sq ft warehousing space expected to be developed in the country in next five years supplemented by around 110 logistics parks. According to a report by real estate consultancy firm, warehousing activities account for about 20 per cent of the total Indian logistics industry and offer tremendous growth potential. This segment of the logistics industry is estimated to grow from $20 billion in 2007-08 to about $55 billion by 2010-11, growing at the rate of 35-40 per cent every year, the report pointed out. The entry of global third party logistics players is fast changing the model of logistics model in the country to more of a strategic function.

Changing business dynamics and the entry of global third party logistics players has led to the remodeling of the logistics services in India. Around 45 million sq ft warehousing space is expected to be developed by various logistics companies which would further boost real estate activities in key locations across the country, the report added.

Global realty consultant has said in a report that though Indian office markets have continued to grow over the past few years, the last few quarters have seen a polarization in the office markets in terms of growth in demand across the country. Economic slowdown in the US is expected to temper demand for IT and ITeS office space in Gurgaon and Noida during the second half of 2008. The real estate trend will be different for office markets. The report has categorized the office markets across six major cities Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad and Kolkata in three broad segments. First segment includes markets which are likely to be “susceptible” in terms of retarded demand growth for the remaining half year of 2008, the report said.

Delhi NCR property sector has been ablaze for the past 2-3 years, with record deals being signed. Real estate developers are promoting sprawling townships, shopping malls, software parks and office complexes across the area, as the insatiable hunger for real estate grows. There is a sustained supply of Commercial Properties all across Delhi NCR. With increasing return on investment in the real estate market, the value of property in Delhi has grown by leaps and bounds. In a recent survey, Delhi has emerged as one of the top three investor's choice for real estate investments. Infrastructural development such as the Metro Rail, Expressways etc will add to this rush.