Investment in country's real estate sector remained subdued in the second quarter this year amid global economic slowdown, which has also cast its shadow on the property markets across the world, says C B Richard Ellis.
Global real estate consultant C B Richard Ellis (CBRE) in its latest 'Asia Pacific Investment Market Report' for the second quarter of 2008 said like most property markets around the world, Asian markets have been affected by slowing economic growth and unsettled capital markets.
"In India, the investment market remained subdued," CB Richard Ellis South Asia Chairman and Managing Director Anshuman Magazine said.
The cautious attitude was largely because many investors expect the ripple effect of the global credit crunch to continue unfolding in Asia.
"Investors have been exercising restraint in launching new developments and projects intended to support new emerging commercial hubs. Developers profitability was also impacted by rising construction costs, escalating interest rates and tighter lending measures," Magazine added.
However, financially-sound institutional investors, including pension and sovereign wealth funds, remained active across major cities in Asia, CB Richard Ellis said and added that "direct commercial property transactions in Asia were up moderately in the first half of 2008, as compared to the corresponding period last year."
