India property price expectations

High-end properties in Gurgaon, India may see a softening of prices. According to leading multinational real estate companies, significant number of high-end properties are expected to be finished by 2009 which could dampen prices. Further, approx 60% on buyers of such properties tend to be investors who look to exit at completion of the project.

Meanwhile, office space rentals in Mumbai and Delhi continue to escalate due to shortage of high quality space in sought-after business districts. Office space in Mumbai Nariman Point is touching Rs 500 per sq ft, at Bandra Kurla it is around Rs 450 per sq ft and Rs 400 per sq ft at Lower Parel.

If you are a commercial property investor in Mumbai or Delhi, you are in for a great time. However, if you had put money into residential space in Gurgaon, it could be time to put on your thinking hats !