SHPSF | Quote | Chart | News | PowerRating – The retail boom is here to stay. Inflation may be worrying organised retailers in the form of falling footfalls but softening real estate prices will help them to continue with their planned expansions. In certain markets, the decline in rentals has been to the extent of 5 to 10 per cent and some industry players foresee a further fall of 15 to 20 per in the next few months.
Big Bazaar, Shoppers Stop, Provogue,Vishal Retail are going ahead with their expansion as planned. A general slowdown, rising of interest rates for home loans and liquidity crunch indicate that the rental rates may dip further.
Big Bazaar will add 60 new stores by June 2009. It currently has 91 stores across the country. Rajan Malhotra, CEO, Big Bazaar said, The past boom of real estate saw many investors backing projects with incredibly high prices. They may now find it difficult to hold on to the same.
More : tradingmarkets.com
Send an E-Mail for Delhi Property Enquiry!
Related News from Delhi
Slowdown in housing has now spread to office rentals. Gurgaon and some business districts in Delhi have seen a decline of up to 25% in office rentals in the June quarter. Meanwhile, office space demand saw marked moderation in Mumbai and Bangalore as office occupiers deferred their expansion and downsized their commitment.
According to the international property consultancy firm CB Richard Ellis latest report, the average rental in Gurgaons grade A office properties has declined from Rs 105 per sq ft to Rs 95 per sqft in June quarter, compared to the March quarter on the back of increased supply
Companies which have deferred expansion plans in the National Capital Region due to high property prices can now think of going ahead as rentals for office space in IT and SEZ segments have declined by up to 13 per cent during the second quarter of 2008.
The rentals of IT/SEZ segment in Gurgaon and Noida witnessed correction with values declining by 3 per cent and 13 per cent over the quarter respectively, global real estate consultant Cushman & Wakefield (C&W) said in its report on office market for second quarter of 2008.
The anticipated supply and deferred expansion plans
Real estate market booming across board
THE real estate market in India has been doing exceptionally well for the past 10 months. While residential and retail prices have shot up, commercial prices in all major metros have been keeping pace with inflation, said Mr Anuj Puri, Managing Director, Chesterton Meghraj, an international property consultant firm.
Mr Puri spoke to Business Line about the the commercial, retail and residential markets in the metros. He said that prices in the commercial segment have kept up with the inflation rate — the lease price is between Rs 20 and Rs 30 per sq.ft. The
The head of Pantaloon, Indias leading retailer, has warned that high property prices in big Indian cities are threatening the countrys burgeoning retail industry and adding to the pressures brought on by soaring construction and labour costs.
Kishore Biyani, chief executive of Pantaloon, told the Financial Times: At current property prices, you cant exist in the modern retail business.
Either productivity has to increase significantly or rent has to come down.
More : ft.com
The dream house you have been wanting to buy for a long time is just getting beyond your means, as interest rates are firming up and prices arent cooling off yet.
This has caused many home buyers to now settle for rented flats instead.
After all rentals are comparatively low in most Indian cities compared to the sky high prices and experts say that moving in as a tenant makes better commercial sense.
If you see rental yields they are anything between 3-5 per cent pre tax which is a misnomer because the commercial yields are anything between 8-10 per cent. There
