Property Rentals to remain steady in 2015 in India: RICS Survey
National, 24th July 2015: RICS – a global professional body that promotes standards and chartered qualification in real estate & construction is expecting real estate sector in India to remain positive despite mixed economic conditions according to Q2 RICS’ Global Commercial Property Monitor.
Further, the property rentals in 2015 are expected to yield positive growth especially in commercial property. RICS’ Global Commercial Property Monitor is a quarterly guide to the trends in the commercial property investment and occupier markets.
The Occupier Sentiment Index edged up from 2 to 8 suggesting a slight improvement in sentiment compared with Q1.This was driven by a further modest rise in occupier demand over the quarter.At a sector level, the latest results show offices continue to demonstrate greatest reslience with the demand indicator running ahead of the leasable space measure for the sixth successive quarter. This is reflected in rent expectations which are more upbeat in offices than other sectors.
“Growth in investment demand is being outpaced by that of supply across South Africa, China and India. Notably amongst the Emerging markets, India is the only country, which has recorded a marginal positive growth in both Occupier and Investment community.”said Mr. Sachin Sandhir, Global Managing Director, Emerging Business, RICS.
“The commercial real estate market in India seems to be showing signs of improvement. On account of positive capital value expectations, demand for quality office space seems to be holding ground and investors seem to be looking at adding stabilized assets to their portfolio. A careful watch on how much is being absorbed over the coming quarter; will determine the fate for the rest of the year.” said Ms. DevinaGhildial, Managing Director, South Asia, RICS.
3 Month Rental Expectations - Fresh demand to take up space is running pretty much in-line with new supply but despite this feedback on rents is still consistent with modest increases.
12 Month Rent Expectations - Rent projections have also softened somewhat compared with the preceding quarter and more so looking out over the next three years. Nevertheless, the feedback is still consistent with higher rents with prime offices seeing the largest rises.
RICS promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure. Our name promises the consistent delivery of standards – bringing confidence to the markets we serve. We accredit 118,000 professionals and any individual or firm registered with RICS is subject to our quality assurance. With offices covering the major political and financial centres of the world, our market presence means we are ideally placed to influence policy and embed professional standards. We work at a cross-governmental level, delivering international standards that will support a safe and vibrant marketplace in land, real estate, construction and infrastructure, for the benefit of all.