With developers forced to return to the drawing board to make projects financially viable, the landscape is, indeed, changing.Look what TTK Prestige, the cooker-to-condom maker, said in a notice to the Bombay Stock Exchange last week.In 2007, the company had entered into a joint development agreement with Kolkata-based Salarpuria Group to develop a 6.3 acre site in Dooravani Nagar, Bangalore.The initial plan was to construct a mall to ensure recurring rentals. But the financial crisis has forced a change: residential blocks will be added to the project."Taking into account the ground reality, Salarpuria suggested putting up a residential-cum-office space. But a decision on this is yet to be taken," said K Shankaran, director and secretary, TTK Prestige.The management feels the new plan makes sense from a liquidity point of view.

Also last week, another firm, Sunteck Realty, said it was revisiting its project --a commercial complex on a 1.5 acre site between Kandivali and Borivali. "The project hadn't even reached the drawing board when we closed the deal a few months back. However, taking into account the oversupply situation in Mumbai's commercial space, we thought it prudent to develop a high-end residential complex instead, with a small portion of retail added to it," said Sunteck Realty managing director Kamal Khetan.Orbit Corporation, the south Mumbai realtor, decided convert its 2.5 lakh sq ft commercial development, called the Hafeez Contractor House in Lower Parel, into a residential project. Pujeet Agarwal, managing director, Orbit, said the company is actually converting two commercial developments -- the Lower Parel one and another in Andheri -- into residential ones.Realty analysts said oversupply and declining demand is making such commercial space development unviable."The government's initiatives towards reducing borrowing costs is reflected in declining interest rates on home loans. This, coupled with realty prices getting more realistic are helping maintain the excitement in the residential space," said Sanjay Dutt, CEO, business, Jones Lang LaSalle Meghraj, the real estate consultancy.Revival in demand for commercial space, meanwhile, will largely depend on the global economic scenario.

"The only movement that I see is offices being relocated to more reasonably priced commercial developments thereby cutting costs," said Dutt. Investment bank Goldman Sachs in a recent report, said primary residential volume trends (year to date till May this year) indicated recovery in markets such as Mumbai and Noida."Inventory days in the two cities have fallen back to early 2008 levels or better. However, the overhang in Bangalore, Chennai, Gurgaon and Hyderabad remains significant with at least 15 months of inventory in the pipeline," Goldman analysts Vishnu Gopal and Aditya Soman wrote.

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