Every organic and organic object in this globe or materialistic world has its own rise and fall and the downturn is also on the verge of receding or coming to end. There is hardly any doubt that the fiscal crisis worldwide tormented the human race for months, led to a drastic change in the global economic climate and has also disposed of many established notions as well.
All these indicate the market is rising again and Indian property market, especially in key business districts of the country, is also witnessing a steady reversal. This has bolstered the confidence in banking and financial services; however, IT and ITeS sectors are not ready to share the podium of success yet. Reason? As per analysts, brunt of global economic downturn is still prominent in these sectors.
In the Indian property market scenario both Delhi and Mumbai are seeing the maximum growth. Take for instance Bandra Kurla Complex and Kalina districts of Mumbai. According to the CB Richard Ellis Asia Market View for the second quarter of 2009, both these cities perceived overall vacancy levels rise to 29.4%, while vacancy levels in Noida in the National Capital Region hovered at around 40%.
What can be the main cause of this renewed confidence?
As indicated by the report, election of a new government and declining interest rates improved local business sentiment during the second quarter in India.
‘While the second quarter of 2009 observed some improvement in the office-space market with levels of inquiries going up, vacancy levels continued to remain high, said Anshuman Magazine, CBRE Chairman and MD for South Asia. ‘The fall in capital values has encouraged more companies to explore and evaluate opportunities for buying rather than leasing the required office space,’ he added.
Suman Memani of Religare Securities said that the commercial market is now following the growth spurt of the residential sector but slowly.
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