CoreNet Global Releases Update on the Outlook for the Region’s Commercial Real Estate Industry Ahead of Its Asia Summit Due to Take Place in Mumbai on March 3-5
MUMBAI, India, Feb. 13 /Xinhua-PRNewswire/ -- As part of the run-up to its Asia Summit in Mumbai next month, CoreNet Global, in conjunction with Colliers International and Jones Lang LaSalle, today issued an update on current market conditions and the outlook for the region’s corporate real estate industry.
According to the group’s combined research, regional growth is likely to remain strong in 2008 with the Asia-Pacific expected to enjoy sound property market fundamentals. To date, issues associated with the US sub-prime mortgage sector have had little impact on the region. As a result, most markets continue to be attractive to investors and sentiments remain positive.
The group reports that regional liquidity levels are high and given that both local and foreign investors have maintained their allocations to real estate in recent months, corporate realty prices have held up.
Research also indicates that office markets across the Asia-Pacific are experiencing robust leasing activity with emerging locations such as India and China, in particular, enjoying sustained levels of underlying demand.
In addition, office rents continue to remain buoyant with most markets posting strong gains over the last twelve months, including standout performers from Singapore (104.4%), Kolkata (80.0%) and Brisbane (76.8%).
With regards to India, Mr. Rajnikant Agrawal, Chair of the India Chapter for CoreNet Global says that the outlook for the industry remains optimistic and that the sector can look forward to continued expansion during 2008.
"In general, corporate rentals are steady with a minor upward movement being reported in Central Business Districts (CBDs) and off CBD areas in most of the cities across the country."
However, Mr. Agrawal notes that there has been a slight resistance reported amongst businesses to take up offices in CBDs due to lack of quality spaces and skyrocketing rentals in prime locations. "The lack of quality Grade A office space in central business areas is forcing companies to settle for Grade B buildings."
Despite this, Mr. Agrawal confirms that locations such as Mumbai are expected to continue booming with persistent overseas investment and unending demand for office space.
He comments that hot spots to watch include eastern suburbs such as Ghatkopar, Vikhroli, Kanjurmarg and Navi Mumbai which are focal points of IT park developments.
Furthermore, Mr. Agrawal confirmed that over 9.5 million square feet is currently under construction across Mumbai’s suburban market. Vacancy levels are also at a historical low with average rentals at INR 60 per square feet per month.
About CoreNet Global
CoreNet Global members manage US$1.2 trillion in worldwide corporate assets consisting of owned and leased office, industrial and other space. With 7,000 members representing large corporations around the world, CoreNet Global ( http://www.corenetglobal.org ) operates in five global regions: Asia, Australia, Europe, Latin America and North America, including Canada.
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