The real estate prices have soared in India over last 3-4 years. In some areas like Pune and Hyderabad, they have more than tripled and it is expected to rise even further.
Not only outright purchases, even the rentals are touching the skies.
In a recent study done by Cushman & Wakefield – Office space across the world 2008 – India scored very highly with 3 Indian locations ranking in top ten most expensive office spaces in the world. Mumbai CBD (Nariman Point) came in at 5th, Mumbai’s Worli area coming at 7th and New Delhi CBD (Connaught Place) coming at 10th.
Overall, Indian markets performed exceptionally, posting 36% rental growth collectively, highest across the globe in 2007. In fact, the significant rental growth witnessed in India has placed eight Indian micro markets in the top 10 locations in terms of rental growth in Asia-Pacific region. The central business districts of Mumbai and Delhi are costlier than the most posh office areas in cities like New York, Washington, San Francisco, Rome, Zurich, Shanghai, Dubai and Frankfurt.
The highest growth in rentals was achieved by Kolkata’s Rashbehari Connector with an increase of 86% to Rs 65 per sqft a month, followed by Powai in Mumbai at 83%, Andheri and Malad recorded 71% and 64% respectively.
 
In the southern cities, Hyderabad’s CBDs Begumpet and Raj Bhavan Road emerged as the highest rental riser at 44% to Rs 52 per sqft per month while other markets within cities like Pune, Chennai and Bangalore witnessed increase of 27%, 24% and 26%, respectively. In Bangalore, CBD rentals went up to Rs 73 per sqft a month.
Comments
As the real estate prices are sky rocketing, it’s going to first off all effect the low budget entrepreneurs and for those who has already planned to start a business within a budget has to wait for sometime to launch their business or need to cut off some bit of their dreams,but for well settled businessman, like the Mallaya’s, Bajaj’s, Ambani’s, its not a big deal, so if we think from the perspective of a budding entrepreneur, its not justified. i will be awaiting for more updates.
Reading this article, I remembered an anecdote told to me by my cousin. Years ago, he was a software engineer working at an office in Nariman Point. However, his office did not have a photocopier. They used to get their photocopies from some ‘xeroxwallah’ downstairs. When he told his boss to purchase one, his boss shot down the idea. The boss told him that considering the price of real estate and other factors it was far cheaper to get copies from outside than to do have an in-house photocopier.
A lesson in outsourcing :)
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Despite the current issue with lack of infrastructure and clashes with displaced locals, India’s real estate prices continue to rocket. Mumbai and Delhi are now amongst the top ten most expensive office locations in the world, comparing with London, Hong Kong and Tokyo for the top slots.The Indian financial markets have been performing extremely well over the last few years, encouraging a multitude of foreign investment banks and institutional fund houses, along with international property developers to enter the market. The Indian government is keen to create a world financial center in Mumbai, and many recent arrivals have headed to Mumbai, leading to a surge in demand while lack of inventory or new supply continues to plague the market. This has lead to a phenomenal increase in rentals similar to what was witnessed in the early 1990s.For more one can view-realtydigest.blogspot.com