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CEO SPEAK – “Commercial space absorption in 2015 has been a silver lining”

Posted: January 26th, 2016 | Author: | Filed under: Uncategorized | Comments Off
Here’s what Mehul Doshi, our Director at Doshi Housing Limited has to say about increase in commercial property sales in 2015.

Jan 23 2016 : The Times of India (Chennai)
CEO SPEAK – “Commercial space absorption in 2015 has been a silver lining”
Mehul Doshi, director, Doshi Housing, speaks about changes in the property market in the last two years
How has the property market changed in the last two years?After the runaway growth between 2010 and 2012, the markets started slowing down from 2013. This slowdown was mainly due to the lull in the overall economy.This has changed the market in various ways. On the demand side, we see an enduser driven market that evaluates the options available carefully. Unapproved projects or yet-to-be construct ed plans are not considered. On the supply side, developers are offering housing options that cater to investor’s requirements and fit their budget. The emergence of the compact home concept is an example of this.

How has the commercial sector fared inn 2015?

The commercial space absorption in 2015 has been a silver lining for the real estate sector in Chennai. With close to five million square feet absorbed in 2015, there has been a sharp decline in the vacancy levels in the city.Office rentals are also moving up. However, the rentals need to grow significantly to make commercial development viable and pave the way for new supply to come up in the city.

How will the real estate sector be affected by the Real Estate (Regulation and Development) Bill being tabled?
The Real Estate Bill has not been passed as yet so it is too early to say how it will impact the realty sector.

If the bill is passed, it will bring more transparency and accountability but for it to be truly effective it needs to bring in the sanctioning authorities under its fold to en sure that all the project proponents are accountable. The bill should be prospective and not retrospective and should not be made applicable to ongoing projects as it will lead to complications.There should be a robust system in place to clear the applications expeditiously.

What developments do you look forward to in 2016?

This year is going to be the year of revival of the real estate market in Chennai.There was a good response to project launches that happened in the last quarter of 2015 in the city and with other positive indicators such as improvement in the economy, higher levels of recruitment, uptake in absorption of commercial spaces and an increase in the demand for automobiles -all these developments point towards a robust residential realty market in 2016.

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