For bigger cities, the rate is stagnating and has enabled expansion of the cities through connectivity using highways and excellent roads. Thanks to the top builders in India, prices have reached almost the lowest points. The net yield for rent in India is somewhere around 2.7% compared to the US’s 4.7% and the Japan’s 4.5%. This helps in showing that the real estate in India is overvalued.
The market is presently moving away from the act of being speculative as the prices are gradually getting lot more real. The commercial and retail space is mostly originating from the Indian metro cities. This can be expected to see the upward trend albeit single digits. This space includes space and seems to be taking shifts from the sales to leasing and even maintenance. The prime segment has always been the commercial segment across the key cities in the country including Lucknow, Delhi, Gurgaon and other places in southern India like Bangalore. The first 6 months of the year 2013 has seen the 20 million sq feet of the office space to be adding a staggering growth of about 16%.
The hospitality market comes under the Real Estate India and includes hotels, convention centers and service apartments. Lucknow has always been a big market for hospitality in India. The hospitality sector is only growing gradually with the increase of tourism and Lucknow is never short of Tourism, thanks to the buildings left behind by the Nawabs!
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