BHUBANESWAR: The commercial rents are hovering around Rs 100 per sq ft even in the posh localities like Janapath, said Sanjay Kumar Jha, Secretary of Real Estate Developers Association of Odisha (REDA). Forum Mart, BMC Bhawani Mall, Pantaloons Mall, Idco Towers, and Fortune Towers are some of the prominent commercial properties in the city.
Jha said that players are not inclined for investment in the commercial complexes as they are doubtful about recovering the money.
"Slowdown in the mining sector, closing down of the BPOs of ICICI, E Nxt which were providing services for the Tatas and shelving of expansion plans of acclaimed retailers have led to the weakening of the demand for commercial properties," he said.
Realtors feel that delay in grounding of the targeted projects in the state has also contributed to the lower demand for commercial properties as the influxes of population are directly related to the growth.
Due to slackening of the demand in the segment, the prices of the retail segments in different locations are not fixed as is the case for the residential units. "Due to non-availability of organised office space barring a few complexes, most of the offices are now operating from residential buildings and the rents paid are low," said Sadhak Mishra, Managing Director, SJ Developers which is setting up a two-lakh square feet commercial property at Raghunathpur. "There is appetite for office spaces in the city and it may take time for the correction of prices," he added.