The commercial property market has seen its rental outlook slip again after a short-lived rebound. While investor and occupier demand has fallen on account of slowing economic parameters, rental values are also turning negative. According to a report by RICS India Commercial Property Survey, sentiment in the Indian real estate market has been adversely affected in the second quarter of the calendar year, as the economic picture in the country continues to remain bleak with the declining value of the rupee and growth forecasts being revised lower, along with a deteriorating global climate. Demand from tenants has slipped in Q2 as compared to Q1, where demand was more buoyant. The survey suggests that the desire to take up space has been affected in three of the last four quarters. This trend is very different from the previous nine quarters before that, when tenant demand was on the rise. The turnaround is most visible in the office sector. The investment market is also witnessing a similar trend with investors shying away from the market on account of economic situations. Both investment enquiries and future capital value expectations have fallen as a consequence, the report said.

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