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Why commercial property rates and rents are increasing even during the economic slowdown?

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Why commercial property rates and rents are increasing even during the economic slowdown?

Last updated: January 20 2020
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  • Why commercial property rates and rents are increasing even during the economic slowdown?

    There has been continious talk of economic slowdown, if it is real then commercial property should see healthy correction.

    But commercial property prices for purchase as well rent are simply going through the roof across country, how can investors or tenants afford it if business itself is down due to slowdown?

    Any thoughts?

    Thanking in Advance.
    Last edited January 20 2020, 05:08 PM.
  • #2

    #2

    Re : Why commercial property rates and rents are increasing even during the economic slowdown?

    To keep it short, commercial real esate did see a progressive uptrend in 2019 and if experts are to be believed, 2020 will be a time for further boom. Some of the reasons for such trend is the amount of transparency and fulfillment of promises in commercial projects, as compared to residential real estate. Secondly, rents are on the higher side as there aren't many ready-to-move-in commercial projects in the most sought after markets. Thirdly, as corporate companies expand more, the hunt for larger spaces in and around major hubs, dominates all other requirements, leading to the acceptance and commitment to projects being developed at rates or rents that the developers/sellers deem right.

    These are just a fewof the reasons why commercial real estate is in demand and rates/rents are ever increasing.
    Talk TRUE; Talk IREF

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