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Residential sales remain moderate in Mumbai

Nauzer K Bharucha, Mumbai, The Times of India

May 08, 2012

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Office market in the city witnessed subdued transaction activity in March even as rents and capital values remained stable during the month, said a report released by Jones Lang LaSalle on Tuesday.

Among the transactions were Pfizer which leased space at Jogeshwari in north Mumbai. Few buildings which became operational in March included Phoenix Market City at Kurla, I think Thane Phase 2 at Thane, Mindspace Building 5&6 at Airoli and Godrej IT Park Wing C at Vikhroli. The report said occupancy levels were good in Godrej IT Park Wing C and Mindspace.

On the residential front, projects launches remained stable in Thane, Navi Mumbai and extended suburbs of Mumbai. "Residential sales remained moderate in March. Capital values continued to show marginal upward trend across most sub markets (barring south Mumbai) despite nominal absorption rates,'' it said.

However, rents continued to increase as demand for rental housing remained high. "The fact that potential buyers continued to defer their decision to buy drives growth of the rental market in Mumbai Metropolitan Region,'' said the report. Major launches in March were Omkar Wing A and B at Worli, Godrej Platinum Tower 2 at Vikhroli, Lodha Dawn at Ghodbunder Road, KUL Tulip at Ghatkopar.

In the retail segment, international retailers primarily in the luxury segment continued to expand their footprint in prime locations of the city.

Meanwhile, the Jones Lang LaSalle report said the value of investment grade real estate that is under construction in India is estimated to be about $180 billion as of fourth quarter of 2011. "This is an indication of the country's potential which investors will definitely not want to ignore," it said.

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