RICS officially launched a research report, What's trending - a report on the shifting facets of Indian Real Estate. The research has an in-depth analysis of the Indian Office market.
Key takeaways related to Industrial real estate:
- Smart Cities can also be developed out of existing market and key enabler would be emphasis on thorough fundamental improvement & not just ICT wrap
- Indian Economy is showing signs of robust development after 2-3 quarters but that may not be true for Real estate owing in parts to contradictory government policies such as high stamp duty, Land acquisition bill, FDI in retail to name a few
- REITs are going to game changers but cannot solely lift the entire sector. There hasn't been a single registration of such trusts with SEBI so far. At present REITable asset value in India is$8-10 billion
- For funding agencies Partner/promoter risk weighs more than any other factors. Majority of India focused funds haven't been able to deliver on promised rate of returns
- Make In India initiative can act as critical enabler for manufacturing industry given the fact that India still has lowest labour rates amongst BRIC nations