Thursday, February 14, 2008

US slowdown spells bad news for developers targeting IT sector

The market for information technology-related real estate, such as locations in IT parks, could see a sharp correction because of an impending slowdown in the US, the largest market for Indian IT companies.

Shaving costs: Infosys campus in Bangalore. Real estate analysts predict a price correction in cities where several technology parks are being developed. The slump could last for the next two years at least, they add.

Shaving costs: Infosys campus in Bangalore. Real estate analysts predict a price correction in cities where several technology parks are being developed. The slump could last for the next two years at least, they add.

Real estate analysts predict a price correction in cities where several IT parks are being developed. They add that the slump could last for the next two years at least. “We could see as much as 15-40% of IT parks’ prices being shaved off in destinations where supplies are coming up at higher prices, such as Chennai and Bangalore in south and Pune in west,” said Chanakya Chakravarti, managing director of real estate at Actis Advisers Pvt. Ltd, a private equity firm.

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