Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Chennai Has Witnessed a Marginal Increase in Commercial Market

By Subhash Kumar Subscribe to RSS | August 10th 2012 | Views:
loading
 
  



There has been a marginal increase within the demand for commercial property in Chennai. Whereas the residential area district witnessed a decrease in demand for workplace area with absorption recorded at around 0.28 million sq. feet compared to close 0.35 million sq. feet throughout the previous quarter, the peripheral commercial district witnessed healthy demand levels with absorption levels recorded at 0.30 million sq. feet throughout the quarter compared to eighty thousand sq. feet registered throughout the previous quarter.

While Chennai has witnessed a marginal increase in demand for prime commercial area, provide constraints would possibly lead to rental values continued to acknowledge with reference to mid term. Information Technology and back office operations are expected to stay major contributors to overall office space area absorption within the town.

Transaction activity within the central business district remained low throughout the quarter and there was no addition within the existing provide. The non central business district small market witnessed a rise in transaction activity throughout the quarter with absorption of around 0.26 million sq. feet, compared to 0.16 million sq. feet throughout the previous quarter. On the provision front, around 0.21 million sq. feet of Grade A workplace area was released in the region.

Commercial market of Chennai has notched up absorption of 0.5 million square foot throughout the primary quarter and also the town could witness a surge in SEZ provide throughout the approaching months.

The year began on a sluggish mode because of cascading impact of world meltdown aggravated by the robust supply route across town. In fact, surveys by international property consultants reveal that the city’s internet absorption throughout first quarter was the lowest in almost 2 years.

In a connected development, manufacturing sector accounted for around fifty one percent of the whole transactions, whereas the share of the IT/ITES dipped to around thirty six percent throughout the primary quarter from around sixty percent throughout the previous quarter. Except the investment grade areas, around sixty thousand square foot of grade B area got chartered out throughout the quarter, of that more than fifty percent was leased out into the CBD locations.

No new provider was witnessed throughout the quarter amid delays in the project completion of Platinum Holdings in Navalur and Isana in Arumbakkam.

The transactions witnessed throughout the primary quarter were targeted for the most part on areas like Mount Poonamallee road besides GST road, Ambattur, Velachery, Perungalathur, Perungudi, Sholinganallur and Siruseri.

According to CB Richard Ellis’ quarterly survey, the CBD witnessed a dip in demand for commercial area with negligible absorption of around 0.09 million square foot. The Off / Non CBD micro-market of Taramani, Guindy and MRC Nagar witnessed stagnation in market activity in comparison to the previous quarter. The Suburban Business District (SBD) including areas like Perungudi, Velachery, Mount Poonamallee Road witnessed most activity throughout this quarter with an absorption of just about 0.32 million square foot being reportable as compared to around 0.25 million square foot in the previous quarter.

Overall the market sentiment continues to stay positive that is predicted to translate into healthy absorption over the approaching few quarters as per the industry sources. The SEZ segment ought to still witness provide additional, thereby being a serious contributor to the market of commercial property in Chennai. IT and back-office operations are expected to remain major contributors of commercial area demand and transaction activity. Rental values are expected to stay stable across most micro-markets over the approaching few quarters.

Subhash Kumar - About Author:
PropTiger is an independent real estate advisor with a pan-India presence. We aspire to be your first port of call If you want to buy a property in Chennai.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/real-estate-articles/chennai-has-witnessed-a-marginal-increase-in-commercial-market.htm

Related Real Estate Articles Subscribe to RSS

The Roller Coaster Ride of Rental property Dubai
Published by Mark Castellino on December 1st 2011 | Real Estate
The best way to start up any business in Dubai is to find out the best location first then go for th...
 
Choosing trustworthy property consultant is beneficial
Published by Deepti on May 4th 2012 | Real Estate
Mohali is a full-fledged market of real estate. It is major part of tricity though it has now a sepa...
 
Central London property management services are highly sought-after
Published by John M. Alcorn on March 20th 2012 | Real Estate
Investment in buy-to-let properties is growing more popular, particularly for people aiming to augme...
 
Investing in property is what sound investors suggest
Published by Sophia Milller on December 13th 2011 | Real Estate
South Africa is one of the most developed countries in the entire continent of Africa. Does this mea...
 
Get the best value of your property with Folsom Property management
Published by Nishaidhijames on August 23rd 2012 | Real Estate
Sale and purchase of property is an important part of man’s life. A person always tries to buy a h...
 
Strata property investment advantages
Published by Chris Whelan on December 27th 2011 | Real Estate
In almost every country strata management property investment is getting more popularity due to its ...
 
How to choose a good property in Bangalore
Published by Andy Wagon on February 15th 2012 | Real Estate
If you currently want a property and were looking for, then there are many references that can be us...
 
Want a sound investment advice? Opt for property investment
Published by Sophia Milller on December 13th 2011 | Real Estate
There are people that earn their living only through rents received from their properties. When the ...
 
Reasons for hiring an expert real estate agent to invest in property
Published by Deepti on April 17th 2012 | Real Estate
Buying your dream home for the first time is an incredible learning experience. Today, with the help...
 
Estate agents can help in investing in right property
Published by Margett Helms on May 5th 2012 | Real Estate
Estate agents play a key role in dealings of property. The majority of house sales in London are mad...
 
When you’re spending it large for property it’s advisable to ease up the conveyancing process
Published by Himton Thomas on February 12th 2012 | Real Estate
If you are looking for a cheap and good conveyancing, you need to keep a few things in your mind....
 
Find your ideal property in Andalucia
Published by Melissa Welsh on March 7th 2012 | Real Estate
The real estate industry is constantly evolving. One month everybody is flocking to purchase propert...
 
How to find your perfect property
Published by Ramikenig on December 7th 2011 | Real Estate
With the Dubai property market experiencing a spike in sales prices over the last 3 months it is onc...
 
The contribution of property management companies of Dallas
Published by Nishaidhijames on August 10th 2012 | Real Estate
A city which is located on an area of 343 square miles with about 1,299,543 of population and also t...
 
 
Port Washington property a true place to gamble your money
Published by Jack Smith on July 17th 2012 | Real Estate
People are ready to gamble their money, but everybody wants to make good money from their investment...
 
Get best property deals through web portals
Published by Maaya on May 15th 2012 | Real Estate
It has become a trend to buy and purchase the property in metro cities, thickly populated and it als...
 
Hire estate agents Marlow for smooth property deals
Published by Ricky Charles on January 4th 2012 | Real Estate
Many businesses have flourished and doomed but the real estate business has somehow managed to keep ...
 
Get a good office property in Gurgaon
Published by Atul Sharma on May 21st 2012 | Real Estate
The article is based on real estate property in Gurgaon. It talks about how you can get a good prope...
 
Rental property- its difficult to find without estate agents
Published by Matthew Watson on April 16th 2012 | Real Estate
A proper research of the property market, its trends and different rents in different localities nee...