With the foreign direct investment policy of the central government, the realty developers were expecting foreign retailers to set up their outlets and stores in India. Developers thought they could find some takers for their vacant spaces in their shopping mall projects. Continue reading
Foreign retailers across the globe are flowing to India now. The rising population in India in fact prompts them to set up stores in the Subcontinent. The rising income level is another factor which prompts them to set up more stores here. Continue reading
Office space demand rises or falls, experts vary.
BANGALORE: A recent report of CB Richard Ellis, a US based property consultant, stated that the office space absorption in India rose by 37%. The rise is on a year-to year basis. In the opinion of CBRE, January 2013 witnessed higher demand.
Meanwhile another American property consultant stated that the office space demand is down by 37%. This report of Cushman & Wakefield was absolutely on the opposite of what the CBRE report.
The reports of Jones Lang Lasalle and DTZ India are also not complementing each other. While JLL speaks of a moderate demand, DTZ speaks of a fall in the demand.
As per the report of JLL, office space demand is more or same. Compared to the first quarter of 2012 the demand is moderate this year. The report of JLL stated that in most of the cities the demand for office space remained moderate.
As per DTZ India the office space absorption is down by 20%. Anshul Jain, CEO at DTZ India, said that only 4.8 million of office space was absorbed this year. This is 20% lower than the 6 million sq. ft. absorption of 2012. Continue reading
Oracle India will lease office space in BKC.
MUMBAI: Oracle has signed a lease agreement for its Indian arm Oracle India Pvt Ltd. The IT major has leased large sized office space in the Bandra Kurla Complex in Mumbai. The group will lease 50,000 sq. ft. of office space.
Oracle India will have to pay Rs.340 per sq. ft. for gaining office in the BKC which is one of the most costly office spaces across India and Asia Pacific Region. The lease agreement will be for a term of nine years.
One floor will be fully leased by Oracle India. The transaction worth Rs.183.6 Cr is the largest lease transaction in FIFC. First International Financial Centre (FIFC) is a Grade-A commercial development in BKC.
JLL plans to raise Rs.1200 Cr to invest in the commercial realty.
BANGALORE: Late last year Jones Lang LaSalle launched a private equity fund. The PE fund collected Rs.300 Cr. Now JLL is looking forward to raise another realty fund for investing in the commercial realty.
If JLL collected Rs.300 Cr for investing in the residential sector, the new fund, which is four times bigger than the first, will be invested in the commercial realty.
Rs.1200 Cr realty fund is expected to be launched by the 2013-end. Their first fund was invested in Bangalore. JLL invested the amount in two residential projects.
Though the new fund is expected to be invested in the commercial sector, details are not available. Sources with direct knowledge say that the decision is not yet taken as to whether the investment should be domestic or offshore.
While senior executives of JLL could not be contacted for comments, a person with direct knowledge commented that the investment will be in the commercial sector. He added that the real estate consultants are looking for higher returns from their investment and for this commercial realty is better now. Continue reading
Residential Market will soon experience a price correction.
Mr. Anshuman Magazine, CBRE’s chairman & MD for South Asia, pointing the fallen property prices in Mumbai and other major cities of India, said that the housing segment will soon experience a price-correction. He said that if the lower sentiment remains the same in the residential market, it can be sure that there is a bigger flow of black money.
Compared to the second – quarter prices, prices for the newly launched homes in the third quarter are down by 2 to 5% in Mumbai, reported CBRE. Substantiating their report, another property consultancy reported that the property prices in Mumbai have fallen. According to the report of Liases Foras, the prices in Mumbai have fallen by 1%. Continue reading
Although countries like China and Britain are ahead in the race but India has still managed to acquire 39th position in the favorites list of retailers in the world.
In 2008, the CB Richard Ellis (CBRE), a real estate consultancy conducted a survey in which India was ranked as the 44th preference of retailers. It is an appreciable growth of 5 ranks in just 2 year s. This survey was called ‘How Global is the Business of Retail?’
This survey conducted by CBRE is an annual survey which involves around 294 top retailers of the world across 69 countries. Britain acquired 1st position in the list, followed by the UAE, the US, France and China.
The chairman and managing director of CBRE, Anshuman Magazine said that since the last year’s survey, the growth of Indian retail market is commendable. However, the recent global economic crisis has slowed down the activities since it led to delay in completion of retail projects.
It is the best time to look around for a value buy in real estate. With lower price points in locations which were not within your wallet’s reach, buyers are scouting for good ‘value’ bargains at this time.
And with developers going big on affordable home launches, the timing may just be one of the best for buyers seeking a steal deal.
Anshuman Magazine, CMD of global real estate consultancy CBRE says that value buying is happening mostly in suburban locations as that is where the current supply is.