Sucheta Dalal :Commercial realty prices will fall further says BNP Paribas
Sucheta Dalal

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Commercial realty prices will fall further, says BNP Paribas  

December 10, 2009

 

Investors should wait for another six months before looking for opportunities in commercial real estate, as valuations will fall further, according to the real-estate advisory unit of European banking group BNP Paribas. However, prices of residential properties are now attractive enough for end-users, said Raja Kaushal, executive director and chief operating officer for BNP Paribas Real Estate, India. 
 
"Valuations are still high and, therefore, returns are not attractive. Investors should wait and watch the price trend over the next six months. I expect that prices will come down by then and more deals will happen. But for end-users, this is the best time to buy residential property," Mr Kaushal told Moneylife on the sidelines of Cityscape, a real-estate exhibition being held in Mumbai.
 
“Actual transactions are taking place at prices that are 5%-10% higher than the fair market value,” he said.
Pallabika Ganguly and Ravi Samalad

-- Sucheta Dalal



 



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