The tepid response to the auction of commercial plots organised by the Greater Mohali Area Development Authority (GMADA) recently is an indicator of the subdued activity in the region's industry.
According to realtors, even as the residential sector has gained some traction in the region (Chandigarh, Mohali, Panchkula and neighboring areas) in the past few months, the commercial and retail sector has failed to gain momentum owing to various reasons.
While few realtors believe that oversupply of commercial property in the region led to the present situation, others maintain that rentals charged by owners were still exorbitant, making it tough for the commercial sector to stage a comeback.
The realtors predict that it would take a minimum of six months for the commercial sector to recover.
Sanjeev Sharma, broker officer of RE/MAX, a real estate franchising network, maintains that cost has been a major reason why retail sector could not stage a comeback.
Leaving aside some sectors, not many companies have immediate expansion plans and this probably is acting as a major deterrent to revival in the commercial sector.
Rajiv Mehta from Mega Marketing maintained that corporate sector was yet to come out from the cost-cutting mode.
