Despite a healthy growth by the office segment in the second quarter of 2010, industry sentiments suggest a total recovery is still far fetched.
While healthy leasing activity is maintaining the growth momentum for the sector, excess capacity and low rentals are playing spoilsport. ?Since the beginning of 2010, we have seen movement in the real estate sector, including the office segment. I do believe that in short to medium term, values will remain stable,? said Anshuman Magazine, chairman & MD, CB Richard Ellis South Asia.
?There is still oversupply in various micro markets and this will continue to put pressure on the rental values which should remain stable or correct marginally in some locations in the short term,? added Magazine.
As per DTZ Consultants, the cumulative take-up across the seven commercially most important Indian cities dropped marginally with a 6% quarter-on-quarter change, but this was still a 34% increase over the average quarterly absorption in 2009. These cities include Delhi NCR, Bengaluru, Pune, Chennai, Mumbai, Hyderabad and Kolkata.
?New supply declined 24% q-o-q, indicating that significant supply rationalisation is underway across the key markets,? said the Q2 report on office segment by DTZ.
