A staggering infrastructure finance deficit is threatening Asia’s growth and prosperity. By 2030, an estimated US$1.7 trillion per year (or total of US$20 trillion by 2030) in infrastructure investment will be needed in the region to keep pace with economic development, sustain population growth and urbanization and mitigate the effect of climate change.
The report also recommends the best urban locations for technology firms. Bengaluru, Singapore and Shenzhen stand out as top choices for starting or expanding technology operations in Asia. Modest long-run growth prospects hold down developed cities like Tokyo and Taipei for the sector. While emerging cities offer high growth potential and low operating costs, they tend to score lower on employment criteria and human aspirational metrics.
While Bengaluru tops the charts, Hyderabad has been ranked number 7 and makes a surprise entry, scoring highly on long-run growth potential, although it scores less on other socio-economic factors and does not yet match Bengaluru as a source of talent. As per Colliers Research, about 56 million square feet (5.2 million sq m) of office space, Hyderabad is only about 40% of Bengaluru’s size. However, development is proceeding apace, with total stock set to increase by 33 million sq ft or 60% by 2021.
Irony is that even though the sector has succedded to some extent in attracting the young talent by poaching on professionals from established and matured sectors like IT/ITeS, banking, finance and telecom etc, the retention of these professionals have been quite challenging.
Indian cities witnessed a strong office demand in Q2 2018, with about 12.6 million sq ft of gross absorption recorded, indicating a 10% QoQ growth in office leasing activity.
The role played by the DGTCP (Director General Town & Country Planning) has also been in question because of its alleged inaction in addressing the concerns of the homebuyers regarding the blatant violations of the provisions of the Haryana Development & Regulation of Urban Areas Act, 1975 and Rules of 1976 made thereunder while failing to stop the illegal sale of units being made by IREO in its name without having been granted any permission/approval for the same by the DTCP under the extant provisions of applicable laws.
As per Colliers International, the overall absorption for H1 2018 now stands at ~ 24 million sq ft. Bengaluru (Bangalore) continued to account for the highest share of absorption at 34% in Q2, followed by the National Capital Region (NCR) at 28%, Mumbai at 14%, Hyderabad and Chennai at 8% each, Pune at 6%, and Kolkata at 2%.
The report highlights the key changes in the business environment that are likely to impact CRE requirements and suggests strategies for occupiers and developers to harness the full potential of the opportunities derived from this change. The report also highlights the increased role of investors in changing business environment.
Anita will remain with the Company until September 30, 2018. She joined Mahindra Lifespaces in the year 2002. Of the 16 years she has spent with the Company, the last nine years were as Managing Director of Mahindra Lifespace Developers Ltd.
I often question how will honest journalism survive in this eco system. It is not that I don’t face the challenges and resistance of not being a party to this cartel of corruption. Forget the builders, even a large section of builders’ ‘paid & pet’ journalists have issues with me. I am, after all, a game spoiler for them who is spreading the negativity with brutal honest and ruthless journalism.