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

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....
 
Why one should invest in property in Greece?
Published by Greekexchange on January 10th 2012 | Real Estate
Greece is one of the most beautiful places in the world; people from all over the world visit this c...
 
Reasons to buy commercial property in India
Published by Mike Nicholson on June 12th 2012 | Real Estate
Although there are numerous investment avenues in India to invest in, but there is no guarantee that...
 
Wise decision on strata property investment
Published by Chris Whelan on January 18th 2012 | Real Estate
Making right decision before investing on strata property is always praise worthy work; because ever...
 
Buy residential property on rent
Published by Vicky Martin on June 18th 2012 | Real Estate
Never neglect tenant issues that are brought to your attention. This leads to dissatisfaction, late ...
 
Best price property for sale in Mumbai
Published by Andy Wagon on February 14th 2012 | Real Estate
Owning a home is more than one can indeed serve as an investment in the future, especially if house ...
 
Building a "Buy to let" property portfolio
Published by Jordan Beard on May 9th 2012 | Real Estate
Investing in a portfolio of rental properties in desirable areas throughout the UK is a sure fire wa...
 
Guarantee continuous income with sensible property investments
Published by Sophia Milller on December 13th 2011 | Real Estate
There are so many places where you can invest your money. Buying assets is the best thing to do when...
 
Buying a home Vs Renting a property
Published by Glyn Jones on December 30th 2011 | Real Estate
Buying or renting a property has their own merits and demerits. Where renting a property gives short...
 
Decisions to be made during property restoration process
Published by Larry King on June 20th 2012 | Real Estate
As the restoration process proceeds, there are many decisions to be made including those relating to...
 
Lease your property for commercial strata management
Published by Chris Whelan on January 25th 2012 | Real Estate
Everyone should follow some qualified process during leasing their commercial strata management prop...
 
Bookings of residential property in Gr Noida is back on track
Published by Sanjay Kumar on July 20th 2012 | Real Estate
Apartment bookings in Greater Noida close to Delhi have resumed once authorities recently approved a...
 
Relying on the property solicitors is must and knowledge to be acquainted with
Published by Hemton Thomas on February 4th 2012 | Real Estate
The majority of people put their property on the market with property solicitors....
 
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...
 
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...
 
When you're spending it large for property it's advisables to ease up the conveyancing process
Published by Finten Thomas on February 19th 2012 | Real Estate
Whether you're looking to purchase, sell or remortgage we are able to offer you an excellent value f...
 
Mohali property offering plethora of investment options
Published by Deepti on April 12th 2012 | Real Estate
Mohali, often termed as the Eco town of Punjab, is emerging as the favorite place for property in...
 
The demand of property in Delhi NCR
Published by Maaya on May 24th 2012 | Real Estate
Having an own land or property in Delhi NCR is like a dream, the prices of properties are increasing...
 
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 ...
 
Look out for the best property in Houston, Texas
Published by Brad Hermes on May 25th 2012 | Real Estate
Houston real estate market is reaching great heights in the United States. As the demand of housing ...