The commercial property prices are likely to go up by 20 per cent in the state over the next two years. Bhubaneswar being one of the most happening cities in the country and there being wide gap between the demand and supply of commercial space here, the prices are likely to go up, say the experts.
“Commercial real estate sector is growing at a faster pace than the residential sector and the rate of growth will hover around 20 to 25 per cent over the next two years. Similarly the commercial property prices are expected to see a rise of about 20 per cent during this period, said DS Tripathy, President, Orissa Chapter of Confederation of Real Estate Developers' Associations of India (CREDAI).
He said many big companies are planning to invest in Bhubaneswar as it is seen as a potential city.
Presently the cost of the commercial property ranges from Rs 5,000 to Rs 6,000 per square feet which is likely to see a quantum jump by 30 per cent in the next couple of years, said Rashmi Ranjan Das, Additional General Manager, Vipul Limited.
“Commercial properties have become lucrative for the real estate developers as these are fetching better rentals than the residential properties. However, the main bottleneck in development of commercial real estate is the availability of land. In this context, nodal support is required from the government for creation of conducive environment to bring in the investors to invest”, he added.
The graph for commercial properties is on a climbing trajectory and with supply passing the demand, the sector is expected to grow at 20 to 25 per cent, said Bigyan Bhusan Nanda, Managing Director, Shri Shakti Pasupati Encon (Pvt) Ltd, a city based real estate developer.
