Search Results: logistics (113)

Headlines Housing Recovery, Indian Real Estate Revival, Indian Real Estate Survival, Indian Real Estate After Covid, Covid Impact on Real Estate

Indian real estate recovery timelines & catalysts not uniform

Across the built environment of the Indian real estate the two question that are on everyone’s lips is about the recovery timelines and segment to recover first. Track2Realty finds this uncertainty about the possible recovery, or rather the lack of it, has also kept the fence sitting home buyers on the edge.

Headlines Union Budget 2020-21, Niramala Sitharaman Budget, Budget and Real Estate, Housing Market and Budget

Union Budget 2020-21 neither for survival nor revival of real estate

For the real estate, it seems the government message is that if you wish to revive than learn to survive on your own. Unfortunately, in a market loaded with housing inventory, added with the liquidity crunch, the over-supply could only be absorbed with the revival in demand. There has been no announcement as to how the government would ease the stuck up projects after its initial stressed funds.

Headlines Resilience, Real Estate Resilience, Real Estate in 2019, Real Estate in 2020, Real Estate Forecast, Real Estate Slowdown, Real Estate Revival

Remarkable resilience of Indian real estate in 2019

According to the World Bank, India ranks at 63rd among 190 countries, and the ranking is anticipated to improve further in the coming years backed by progressive government policies. Meanwhile, the real estate sector has shown remarkable resilience despite the bearish phase of the economy. Below is a lowdown of how the real estate story unfolded in 2019:

Analysis REIT, Real Estate Investment Trust, REIT in India, REIT Success in India, REIT Potential in India, REIT Potential & Performance

India can raise over $25 bn with REITs in next 3 years – ANAROCK

While the commercial office sector will dominate Indian REIT listings for the next couple of years, retail and logistics REITs are sure to follow. However, Indian residential REITs remain at best a distant possibility. The draft Model Tenancy Act, 2019 will make rental housing a more attractive investment play – but for Indian residential REITs to succeed as they have in countries like Singapore and the US, rental yields on Indian housing need to significantly surpass the current 1-3%.

Beyond Headlines CapitalLand Limited, Ascendas India Trust,The Ascott Limited, Lee Chee Koon

CapitaLand aims to more than double assets under management in India to S$7 billion by 2024

CapitaLand’s developments underway in India include 17.9 million sq ft of business park space in Bangalore, Chennai, Gurgaon, Hyderabad and Pune when completed.  Another 7.2 million sq ft through forward purchases have been signed up and are under construction.  This includes IT parks in Mumbai and Hyderabad, a seventh warehouse at Arshiya Free Trade Warehousing Zone, Panvel, near Navi Mumbai, and BlueRidge 3, an IT/ITES Special Economic Zone development in Hinjewadi Phase 1 in Pune.  CapitaLand is also building up a logistics asset portfolio in India with 4.3 million sq ft planned for development. 

Analysis REITs, Real Estate Investment Trusts, Indian REITS, Future of REITs, Success of REITs, ROI of REITs

Present and future of Indian REITs

The success of the Embassy Parks REIT has given global investors strong reason to increase their stake in multiple commercial assets across the country so that these could be listed under REITs in the future. Some of these global institutional investors who are eyeing the country’s real estate market via REITs include Japan’s NikkoAm StraitsTrading Asia, US’ North Carolina Fund, Taiwan’s Eastspring Investments, Malaysia’s Hwang Asia Pacific REITs and Infrastructure Fund, and Canada-based Sentry Global.

Reports Office Space in India, Office Space Absorption, RICS Report on Office Space, Colliers Report on Office Space, Trends in Office Space, Designs of Office Space

Average annual office space gross absorption pegged at 50 million sq ft between 2019-2023: RICS – Colliers Research

Colliers International foresees robust demand from GICs, with leasing by GICs across six major cities in India to be in the range of 32.5 million sq ft between 2019 and 2021. Over 2014-2018, occupiers leased about 53.0 million sq ft of office space in multi-tenanted buildings for their GICs. Bengaluru led the demand with about 20.1 million sq ft, followed by Delhi NCR and Hyderabad. Further, we found that companies from the engineering, energy and manufacturing sectors favoured Bengaluru, which accounted for 32% of GIC demand between 2014-2018.

Beyond Headlines Online Furniture Shopping, Online Furniture Business, Pepperfry, Homelane, Finance Intellect Report, Nilkamal, Urban Ladder, Furlenco, Livspace

Going online before opening physical stores is ideal

Furniture players are also experimenting with design and interior modelling of homes. Through an online presence and an influencer network, players are investing in this side of the business. As a result, furniture players are not just your simple sofa sellers, they are much more! They now offer new-age designs, suggest home improvement tips by way of customization and site visits by their own ‘design officers’. These specialized services win over the traditional furniture store operators in terms of post-sales services delivery and customer satisfaction. 

Analysis Office Building, Office Space in India, Office Occupiers Preference, Investors' Preference in Commercial Property, Pre-leased Commercial Properties

Pre-leased assets commercial assets high on investors’ and occupiers’ radar

Better returns, a mature and transparent market are some of the factors that have made investors flock to the country’s commercial real estate. With commercial segment remaining the most favoured among all kinds of asset classes, high-net-worth investors and the uber-rich are now looking at pre-leased assets, primarily office assets, with hope. 

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