Infrastructure for logistics in India booming due to GST
Demand for logistics infrastructure is booming in India due to the introduction of Goods and Services Tax (GST) that has revolutionized how goods are delivered across the country, showed the Emerging Trends in Real Estate Asia Pacific 2019, a real estate forecast jointly published by the Urban Land Institute (ULI) and PwC. This has also been helped by the government of India according infrastructure status to warehousing projects, the report added. Looking at Indian cities, Mumbai stands out with respect to demand for high-quality office space. The city is also seeing a strong growth in co-working assets. On the retail front, high-end malls continue to perform well if properly managed. However, mid-tier facilities are often unprofitable, given that Indian consumers are migrating online. The ongoing build-up of liquidity across the Asia Pacific region still leads to huge sums of money crossing borders, to be invested in foreign real estate assets. Strong outflows in the region seem certain to continue, especially with new reserves from Japan likely to enter the mix in 2019, the report said. “India’s rapidly growing capital markets mean demand for high-quality offices is booming in Mumbai,” said John Fitzgerald, CEO of ULI Asia Pacific. “The report shows that despite apparently high vacancies, ongoing shortage of modern office stock mean new supply tends to be absorbed quickly.” The Emerging Trends report provides an outlook on Asia Pacific real estate investment and development trends, real estate finance and capital markets, and trends by property sector and metropolitan area. It is based on over 350 survey responses received from real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants. “India continues to remain one of the most attractive investment destinations in the Asia Pacific region. With most of the other cities, near the top of the cycle in terms of rent and capital values, India still offers value creation opportunities,” added BhairavDalal, Partner - Real Estate Tax, PwC India.
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