The retail segment of the commercial property that looked bullish during the peak cycle of property rally has though shown upward movement, it is nowhere near the growth rate of the peak level. Reasons are very simple the fact that the lifestyle driven consumption level of the state at large has gone down drastically in the Gift city Ahmedabad turbulent economic phase has its effect on the demand for acquisition of the space as well. It is all the more evident in the sense that while the retail per se has seen some growth in the rental values, it has been stagnant with the hotels and the multiplexes thus reflecting that people are only spending on the need based commodities and luxury spending has completely been curbed in the major cities of Gujarat.
The commercial property owners are actually being forced to renegotiate with the hotel and multiplex chains to avoid getting their Gift city Gujarat latest news get vacant. Some of them have even gone into revenue sharing model to avoid complete price crash. Most of such developers who are operating on the lease model have been hit badly. The sales model has as well as brought the inventory hangover high for the developer.
However, what is all the more interesting in the city property market, at least in the last six months, is the fact that the office space is showing an increase in both the capital as well as rental values. Not only that, the city based brokers even suggest that there has been more enquiries in this segment thus office occupier’s lookout helping the rental value movement to the northward direction.
It is true that the rental market in the Gujarat real-estate is expecting growth this year. However, it will take time to revive and bring in a splurge of funds that could change the dynamics of demand and supply in the major cities of the state. Factors such as location, cost and quality will play a decisive role in increasing the demand for rental this year. Property markets across the state are today witness to a gradual movement but revival is very much anticipated as a real-estate rental market.
By tpsdave from Pixabay