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	<title>RealEstateImprovement &#187; corporates</title>
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	<description>All About Real Estate, Mortagage and the Masses.</description>
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		<title>Real Estate Concern of the Corporates</title>
		<link>http://realestateprovement.com/blog/commercial-property/real-estate-concern-of-the-corporates</link>
		<comments>http://realestateprovement.com/blog/commercial-property/real-estate-concern-of-the-corporates#comments</comments>
		<pubDate>Tue, 24 Feb 2009 08:27:24 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Commercial Property]]></category>
		<category><![CDATA[corporates]]></category>
		<category><![CDATA[Real estate]]></category>

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		<description><![CDATA[Every big city has some areas that are known for higher real estate prices. A major reason for this high price is the presence of large corporates and offices of the multi national companies. Corporate companies acquire prime land at the posh areas and build sky rise buildings the cost of which often running over [...]]]></description>
			<content:encoded><![CDATA[<p>Every big city has some areas that are known for higher real estate prices. A major reason for this high price is the presence of large corporates and offices of the multi national companies. Corporate companies acquire prime land at the posh areas and build sky rise buildings the cost of which often running over billions of dollars. This not only drives the value of such properties further but also that of the adjacent areas. As a result other downstream business units also start setting up offices is those areas. This continues for sometime until all the freehold land in the area are occupied. And it is here that the problem begins. Other corporate companies looking for space in those areas a few years later find it extremely difficult to get a suitable space. </p>
<p>Cities like Tokyo, Mumbai and Hong Kong are today overcrowded with thousands of corporate companies. It is almost impossible for any company to add even a few square feet of area to undertake expansion and accommodate their growing staffs and office equipments. While some companies are adding to the floors others are forced to move to other new locations. These new locations again experience surge in real estate prices within a short span of time. Thus a vicious cycle continues. This is working as a major impediment for new corporate companies to establish offices in prime locations. </p>
<p>Since land is a limited resource, real estate crisis will only aggravate in the long run. Therefore there should be some efforts from the government and land authorities to clearly demarcate areas exclusively for corporate companies. These areas should be completely commercially areas and adequate provisions should be made to accommodate offices for several years whenever the demand arise. </p>
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