Debasish Acharya
Post News Network
Bhubaneswar, April 20: Commercial realty is still a miniscule segment in the real estate sector of the state representing 1 to 2 per cent of the total projects as of now, a top official of Real Estate Developers’ Association of Orissa (REDA) said. “Like other cities, there are no institutional or corporate buyers in Bhubaneswar. As such, supply of commercial space stands at 1 to 2 per cent of total construction in the city,” President of REDA, Kantilal Patel told Orissa POST.On pricing of commercial properties, Patel said it varies in the range of Rs 5,000 to Rs 15,000. Price levels have not changed much as compared with last fiscal.
Regarding growth of the real estate sector in the state in FY16, he said the sector has witnessed a negative growth in 2015-16 as compared with 2014-15. The downturn was due to global economic slowdown coupled with closing of mines in the state. “Growth will pick up only after the revival of mining sector. A good monsoon will also complement the uptrend. Currently, there are many stalled projects in and around the city with no buyers,” Patel added. He also said due to poor demand have pulled down prices in the periphery areas of Bhubaneswar. However, this decline is marginal in the core areas of the city due to limited supplies. On inventory levels, he said it is almost equal to 2 years of demand.
