Track2Realty: As e-commerce attains new heights and presents a number of opportunities for the real estate sector in general—and the warehousing segment in particular—CBRE recommends strategies for landlords and e-retailers for attaining a win-win scenario.
Track2Realty: With a consistent track record for delivering the highest value to home buyers and investors alike, Pune’s real estate market has remained one of the most vibrant and exciting in India. By attracting more and more international and IT/ITeS companies to establish their operations, the city has been generating jobs at a scale which is unmatched by any of the other Indian metros.
Track2Realty: Residential sales declined by approximately 30% y-o-y by the end of 2014 in the seven leading cities of the country, largely due to high price points, sticky interest rates and cautious buyer sentiments. The decline, which was noted across all major cities, was particularly steep in the DelhiNCR (National Capital Region).The slowdown was reported in the premium/luxury as well as the high-end/mid-end housing segments.
Track2Realty: Mumbai, the financial capital of India, continued its office expansion and reflected occupiers’ confidence during the year 2014. Followed by 10% in Q3, the take-up figures of office space for this city grew at 29% q-o-q (absolute terms) from 1.1 million sq. ft in Q3 to 1.42 million sq ft in Q4 2014. The office rentals stayed steady during second half of the year and experts predict a similar spectacle over the next few quarters in 2015.
Track2Realty: Currently, tier 2 and 3 cities account for a smaller proportion of operational shopping malls in India. However, with rising consumer aspirations and demand, the potential of these cities in terms of retail real estate is increasing. Both national and international retailers are expanding businesses in these cities, and this is fuelling demand for organized shopping spaces. While the major metro cities are continuing to launch bigger, international-standard malls, tier 2 and 3 cities are currently graduating to next level by initiation of shopping mall developments. There are notable exceptions to this – Lulu Mall in Kochi is, in fact, the largest mall in India as of today.
Track2Realty: Prabhat Ranjan, co-founder of Brick Eagle, a financial services platform for the affordable housing industry, has forayed into real estate development, incorporating a new venture Olympeo Infrastructure. The company has launched its first project Olympeo Riverside, an integrated township spread across 25 acres on the banks of Ulhas River, in the Neral-Karjat belt, an extended Mumbai suburb.
Track2Realty Exclusive: 2014 was an eventful year for the commercial real estate market in India. The economic outlook in the first half of the year was uninspiring. Coupled with political uncertainty this resulted in investors and occupiers stalled making any real estate decisions. Business confidence was at its lowest. The sentiment changed dramatically in the second half post the national elections as it became clear that there would a ‘new’ stable government.
Track2Realty Exclusive:Following nearly two years of sub-5% growth due to currency volatility, high inflation and fiscal deficits, poor investment and market sentiment scenario, India’s economy bounced back with a growth rate of 5.7% during the April–June period of FY 2014–15, up from 4.6% in the preceding quarter. With business prospects improving across key sectors, the economy is expected to display further improvements in the next quarter.
Track2Realty: The year 2014 has been quite fruitful for the real estate sector in terms of business sentiment, although the real effect of many of the policies and amendments announced in 2014 will take effect only in 2015. Starting from Union Budget FY2014-15, where affordable housing was considered on par with infrastructure, to relaxation of rigidities in the Land Acquisition and Real Estate Regulatory Bill, India’s new Prime Minister has been offering the India real estate sector consistent doses of energy.
Track2Realty: At nearly US$160 per sq. ft. per annum, Delhi’s Central Business District (CBD) of Connaught Place was ranked as the sixth most expensive prime office market in the world, according to CBRE’s semi-annual Global Prime Office Occupancy Costs survey. Mumbai’s alternative business district of Bandra–Kurla Complex (BKC) remained at the sixteenth, and its CBD of Nariman Point at the thirty-second positions on the Top 50 rankings for global prime office properties.