by Mr. Anuj Puri, Jones Lang LaSalle India
Indian Commercial Real Estate 2013: A Review..
Indian Office Market Rental &
Capital Value Momentum Reflects Economic
Dichotomy..
In 2013, the trend of subdued demand for office space
continued from the previous year. Thus, rental
value (RV) growth was slower than that observed in 2012
(with the exception of Mumbai, where
growth was relatively faster).
However, capital value (CV) growth was faster than
rental value growth during 2013, resulting in a fall of market yields.
Economy showing signs of picking-up from 2H-2013
(Annualised % growth - 3 month moving average)
Over the last 10 quarters, market yields have fallen in
the range of 4-6 basis points. The primary
reason for faster growth of CV is the rising input
costs, which forces developers to increase prices
despite less-than-favourable market conditions. This
trend was seen in all cities.
About the author
Mr. Anuj Puri is Chairman & Country Head at Jones Lang LaSalle
India
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