The Real estate sector in India is gripped by slowdown fear. In year 2011 the supply of fresh office space declined by 40 per cent. Delay in project completion, Weak economic cues and vacant stock piling up also private equity investment has risen very sharply in this period of time. According to a property consultant, in year 2011 around 30 million square feet of office space had entered to the key property a market which was 55 million square feet down last year. The high cost of interest rates, uncertain demand and tight liquidity situation were the hurdles that came between constructions of developers.
Till the economic conditions in India and global economy stabilize it is not wrong to say that these sentiments will prevail. Negligible supply was witnessed by leading office hubs in metro cities Mumbai and Bangalore. Developers were forced to delay completion of projects in 2012 as the pressure is increasing. Last year office space absorption declined by 12 per cent from year 2010. When the price of commercial property is low, it is the best time to invest in Private Equity funds even in the phase of slowdown, this worked out quite well for the investors.
Till the economic conditions in India and global economy stabilize it is not wrong to say that these sentiments will prevail. Negligible supply was witnessed by leading office hubs in metro cities Mumbai and Bangalore. Developers were forced to delay completion of projects in 2012 as the pressure is increasing. Last year office space absorption declined by 12 per cent from year 2010. When the price of commercial property is low, it is the best time to invest in Private Equity funds even in the phase of slowdown, this worked out quite well for the investors.
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