Property brokers and agents say that stabilisation in Pune’s real estate market reflects the trend prevalent in the country’s property segment. The country’s economy is facing a slow-down and it is the same case with the construction sector as well.
Ramesh Naik from Naik Navare Association, a property brokerage firm, explains that oversupply of property, especially in the residential segment is adding to this trend. “Most of the construction projects are in their initial phases. Hence, the property developers are in a hurry to sell their projects. The projects are priced comfortably. And the developers are luring home seekers with gifts and rebates. Some property developers are offering reduced Equated Monthly Installments (EMIs) and some are wavering parking fees for housing units,” says Naik. He adds that many transactions are happening the actually figures are difficult to compute.
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Office vacancies in Orange County hit 12.62% and the availability rate shot up to 18% at the end of the first quarter as the negative net absorption trend continued to beset landlords, some of whom are beginning to offer free rent for the first time in several years.
Class-A office property is hardest hit with a firstquarter vacancy rate of 16.2%, up from 14.1% at the end of 2007 and compared to a low of 6.4% at the end of 2005. The swing toward a more favorable market for tenants may be sustained for some time as there are two chief factors working against office owners and managers. First, there are no signs the economic slowdown will stabilize soon. Economist Anil Puri of Cal State Fullerton recently forecast that the Orange County economy has worsened and employers will shed 15,000 jobs in 2008.
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Posted in Commentary, Commercial Properties, For Lease, Orange County, CA, real estate