Growing consumer spending may have brought about a retail boom in India, but property and logistics woes will push the industry toward a shakeout that will see several retailers, concepts and malls bowing out.
Though the Indian realty market lacks transparency and liquidity of the more mature western markets, it is changing fast in response to demands of multinationals, according to a report by consultants, Jones lang Lasalle.
In its latest report for second quarter 2008, Jones Lang LaSalle Meghraj said that though Indian office markets have continued to post growth over the past few years, the last few quarters have seen a polarisation in the office markets in terms of growth in demand across the country. It has categorised the office markets across six major cities -- Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad and Kolkata -- in three broad segments.
Property investments by Indian buyers in the UK could touch 10-15 billion (Rs 81,829-1,227,44 crore) in the next 10 years, according to a report by property consultancy Jones Lang LaSalle. Though the consultancy did not provide the current numbers, it expects the value of investments to grow 10 per cent every year.
Currently, the US contributes 40-45 per cent of the total IT/ITeS outsourcing and offshoring business in India and is the single largest market for India's IT/ITeS business. The real estate sector's growth is fuelled by demand. In India, the demand is derived mainly through shift in global economic conditions. Thus any change in the real economy will have an impact on the physical real estate (construction or ready office space) market.
Retailers in India are the most aggressive in Asia in expanding their businesses, thus creating a huge demand for real estate.
Around 15 venture funds from the US and Southeast Asia will be making investments in the Indian real estate sector through the FII route
Global real estate consulting firm Jones Lang LaSalle has devised aggressive plans to expand its Indian operations by doubling offices, besides increasing headcount to 3,000 from the present 800.
Surpassing Tier I and Tier II cities in cost advantages, five Tier III cities Ahmedabad, Chandigarh, Indore, Kolkata and Nagpur are all set to emerge as major hubs for IT offshoring in next five years, said a global realty consulting firm.
Recovery in US gives extra boost to IT/ITeS office deals in Bangalore and the National Capital Region.
A good number of seniors today are independent, financially stable.
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On Wednesday, RBI reduced the cap on individual remittances abroad from $200,000 (about Rs 1.2 crore) to $75,000 (Rs 45 lakh) and also barred individuals from using funds under the scheme to buy immovable properties abroad.
JLL study reveals 30,501 out of 44,032 units fall in this ticket size.
It is one of the three marquee hotels owned by Sahara outside India.
In the NCR region, a significant number of residential projects in areas such as Noida have been delayed because of disputes with regards to land acquisition.
With Sebi clearing the final guidelines for creation of Real Estate Investment Trusts (REITs), assets worth around $12 billion are likely to be listed in the next 2-3 years.
The realty market has been reeling under declining sales, coupled with higher inventory, for the past two years.
Sotheby's International Realty was founded in 1976.
Tier-II cities are all set to witness good retail growth in near future.
Demand for Grade A office space is rising across the country.
As the BJP is set to form the next government in Maharashtra on Friday, industry experts want the new chief minister to expedite the delayed infrastructure projects in the state and revive investment in key sectors by removing bureaucratic bottlenecks.
Gurgaon and Mumbai, the richest cities in Haryana and Maharashtra, respectively, have always been the preferred markets for investors. Most parts of these cities are beyond the reach for those looking for affordable homes.
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Experts say in the serviced apartments space, developers, primarily from the hospitality sector, are targeting non-resident Indians, expatriates and now, even domestic investors.
Expressing disappointment over RBI's decision to hike the key policy rate, real estate developers said this would lead to increase in finance cost and also affect housing demand during the festive season.
The revival in Mumbai's property market could help the group.
Property markets in Uttarakhand and Himachal Pradesh, which have had a dream run in recent years, are set to face a downturn.
Besides making property more expensive, these also affect the existing owners with higher taxes
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RBI on Wednesday surprised the markets by leaving key policy rates unchanged, notwithstanding persistent high inflationary pressure.
Because of high rents in Mumbai and the response from Delhi, most luxury retail players want to expand in the capital.
Real estate investment trusts may not be attractive enough.
Home seekers demand has exceeded supply and hence there is a possibility of rentals going up by atleast 10 percent.
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