PROPERTY PLUS

Rental, capital values up

NEWSCAN

The capital and rental values for office space in New Delhi have witnessed an increase in the range of 1 per cent to 4 per cent during the last six months, according to a realty consulting firm.

The office rental values rose 1.7 per cent at the prime commercial locations during last six months while the capital values for office space rose by 4 per cent, Cushman & Wakefield said in its latest monthly updates.

The rental values at South Delhi's prime and micro-markets recorded a 2 per cent increase where as capital values rose by 1.8 per cent and 2.4 per cent respectively in the two markets.

At the prime locations of Gurgaon, the rental price for office space declined by four per cent while that of capital values for such spaces rose by 2.6 per cent in the six-month review period.

"Lease rentals are expected to remain stable in Gurgaon and Noida over the next quarter," C&W said.

Prime locations such as Connaught Place is witnessing a rise in rental due to speculation over the launch of the metro operations, however, Grade-A commercial office space continues to be short in supply.

The retail markets are also undergoing a defining change with more developers deciding not to sell space to investors, it said, adding "this has certainly boosted the confidence of retailers."

Expats allowed to own property

Expatriates seeking to own property in the oil-rich UAE's Abu Dhabi emirate can now do so at designated areas, following the issuance of a new property law.

The property law, issued last week, will allow non-nationals the right to own property, but not the land itself in investment areas, the official Emirates news agency said.

The law states that non-nationals will have the right to arrange their properties on the land and derive benefits from them in the investment area based on a long-term land title agreement.

The title will last for 99 years or long-term surface ownership agreement of 50 years renewable for the same period subject to the agreement of the two parties, the agency said. So far only Dubai, which is seeing a real estate boom, allowed non-nationals to buy property at designated areas.

According to the new law, the Abu Dhabi Executive Council shall lay down rules on the transfer of ownership of properties given out before the issuance of this law.

With low interest financing available, a stable currency, a booming economy and the UAE Gross Domestic Product projected to grow to a record $86 billion by the year-end, all the demographic point towards an increased demand for properties, analysts say.

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