Indian Commercial Space Tariffs May Rise In Near Quarters

The rental prices for offices and retail environment has been stable for a period of time and there are possibilities of them to see an increase in the near quarter of 2014. As per the survey by global body for setting standards in the property sector: Royal Institution of Charted Surveyors (RICS) has come up with a finding that the retail and office space process are expected to rise in the near future.

The market is also showing positive sign in terms of the occupier demand for the first time which has outpaced the rise in availability. The rent has been stagnating for a period of many quarters in the past and now the market is clear enough to an increase in the prices.

The economic conditions in the country are on the verge of becoming stabilized and consistent with better signs of improvement. The gradually recovering monetary conditions of the Reserve Bank of India will also improve in the coming time. As per the reports it has been the perception that the stable and the newly formed government will definitely help the real estate industry to bring back the needed reforms for the betterment of this sector.

In accordance with the survey there are major hopes clinging with the new government that they will bring the needed regulations to force which may help them tackle the recent problems related to regulatory bottlenecks, the uprising interest rates, scarcity of quality space availability and also issues relating to inflation.

With the hopes of increasing rentals, it is also speculated that the transactions will also see an increase in the level.

The report also enlightened that the interest and sentiment of the investors is also diverted among the sectors. As the office sector is registering a lot to the material growth it is therefore attracting the interest of the potential property buyers. The reports also made it clear that both the sectors of the retail and industrial market are enjoying equal amount of inquiries.

The report generated by the RICS also made the outlook very clear that the investor sentiment is at a little downstream. But still there are hopes that the transaction level will increase over the period of net three months. There are also chances that the office sector will surpass with better deals in the near term.