News: US-based investment firm Goldman Sachs has received bids ranging from INR4.5bn (US$67.6mn) to INR5.5bn (US$82.6mn) for a planned mixed-use project in Bangalore, India, according to The Economic Times. The companies that are reported to have submitted bids are Indian real estate firms RMZ Group, Tishman Speyer and Oberoi Realty. The project has been named City View.
BMI View: Historically, we have forecast growth for the Indian commercial real estate market - particularly with a surge in maximum rents in Mumbai. However, we anticipate that rental rates for 2013 will remain broadly stable across all sub-sectors that BMI surveys - office, retail and industrial. If this is a continuance of 2011/12's pattern, it may be that current levels are unsustainable.