The general economic slowdown has started impacting the commercial real estate sector as was obvious by slower uptake during the April-June period of the year.
During the period, commercial real estate demand was only at 9.74 million square feet as against the supply of 18.07 million sq.ft, commercial real estate services firm Cushman & Wakefield (C&W) said in a report.
“There has been a slowdown in the real transactions, observed in the period 2008 due to a number of factors, primary amongst which is a general slowdown of the economy,” Cushman & Wakefield Director Kaustuv Roy said.
The IT/IteS sector, which has been one of the biggest consumers of commercial real estate, have deferred their expansion plans, leading to a slowdown in the uptake during the period, he said.
Most corporations, both Indian and multi-national, have been adopting a wait-and-watch policy throughout most of the period, he added.
During April-June quarter rental values across major micro markets in the major cities witnessed rental hikes in the range of 3-5 % over the earlier quarter.
Some peripheral locations in NCR and Chennai also saw a correction in rental values largely because of excessive supply as well as deferred development plans of various proposed projects, it said.