Commercial Development Taking Place In Segregated Hubs


Commercial development is taking place in segregated hubs across the country. Developers believe that in any specific region, commercial development is integrated with other city specific developments. In a city, commercial business districts (CBDs) are mostly mushrooming around IT driven localities.
Devang Trivedi, MD, Progressive Group pointed out that commercial development runs parallel with residential developments so it is integrated with city specific developments. Market sources believe that commercial hubs do better in comparison to well-developed residential hubs.
Popularity of a commercial complex also depends on the kind of services and facilities it offers
to its customers. Meanwhile, Mohit Arora, Director of Supertech Ltd said that commercial development does not nessarily have to follow any specific pattern. “It all depends on what kind of structure you are developing in a particular place. The deciding factor is the demand of that location or place,” he said.
Contrary to this, S S Asokan, ED of Shriram Properties highlights that commercial developments happen largely in segregated hubs and the future seems bright. “Commercial development performs better in new area as well as well developed residential hubs. If malls across the country have to turn out as a real shopping destination and not just hangout zones it has to be properly repackaged. This depend both on realtors and the retail,” Asokana added.
With the growing real estate market opportunities in the extended cities, i.e. Tier II and Tier
III cities, many developers are resorting to such cities for better opportunity at low manpower
cost and establishment costs. Talking about where commercial complexes do well, Neeraj Gulati, MD of Assotech Realty said that commercial complex does well in CBD area with a well planned cluster of residential hubs around it. The large IT/ITES development takes place a little away from residential hubs in view of price advantage, he said.
According to Jones Lang LaSalle (JLL), in the year 2012 the demand will derive from consolidation and relocation to Special Economic Zones (SEZs) by large IT occupiers, who will seek to reduce costs and avail of the related tax incentives. Commercial office space rents and capital values are expected to increase across all cities, albeit marginally in 2012, says JLL.


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