C B Richard Ellis says real estate market softens in Q3

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Mumbai, Nov 12 (UNI) The real estate investment market in India continued to remain subdued amid economic worries, with domestic credit control measures impacting availability of funds for developers, according to Real Estate consultancy firm C B Richard Ellis.

In its report for the quarter three of 2008, Company said the softened sentiments had delayed project timelines and schedules.

C B Richard Ellis Chairman and Managing Director (South Asia) Anshuman Magazine, in a release here, said, ''High interest rates and inflation have negatively affected investor demand.'' Transaction volumes in the residential, office and retail sectors, which had already begun to slow earlier in the year, further tapered off during the third quarter, the Asia Investment Market View Report said.

The report said Asian real estate market sentiment softened considerably in the third quarter of 2008, as the worsening state of global financial markets further impacted capital flows into the sector. Preliminary data shows investment volume down across the region, it pointed out.

Overall the regional investment market is changing from being a buyer's to a seller's market, as a rising number of sellers come under pressure to dispose off real estate assets in exchange for cash, in order to shore up balance sheets and replenish liquidity.

Highly-leveraged investors have largely stepped out of the region's investment markets, while core investors, including pension and sovereign wealth funds, have been hesitant to increase their exposure to commercial property under the present market conditions. The outlook for the investment markets is therefore expected to be difficult, but opportunities remain for buyers looking for distressed sales, the report opined.


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