Building Business At A Competitive Pace

BY Realty Plus

For more than 25 years, Colliers has been creating value for shareholders that has resulted in superior returns and industry growth. Argenio Antao- COO- Colliers International India briefs

  Transformations in the Real Estate Industry Indian real estate sector along with its commercial, residential, retail and hospitality segments, ranks third amongst the major sectors and contributes significantly towards the country’s economy. With the growing demand from the corporate sector, Indian Real Estate is poised to be USD 1 trillion market by 2030, contributing 13 per cent of the country’s GDP.   Keeping In Sync with Changing Times Indian real estate sector will see increased non-resident Indian (NRI) investments in both the short term and the long term. The sector attracted a total of USD 30 billion institutional investments between 2009 -2018 and received USD 2.3 billion investments during the first half of 2019. The sector also received foreign private equity (PE) investment of USD 14 billion between 2015 to Q3 2019. Securities and Exchange Board of India (SEBI) has now given its approval for the Real Estate Investment Trust (REIT) platform which will further allow a range of investors to participate in the Indian real estate market, leading to major growth in FDI in real estate. Simultaneously, developers, in order to attract these investments, have revamped their accounting and management systems to surpass investor expectations. Colliers International is a global real estate services and investment management company with operations in 68 countries, providing expert advice and services to maximize the value of property for real estate occupiers, owners and investors.   Addressing Market Needs In real estate it is not only the financial performance of the asset that is under consideration; quality and health of the asset, also contributes majorly towards the valuation and appreciation of the asset. Hence, due diligence practices have become an essential element in a successful commercial transaction. While procuring an asset, the technical due diligence process allows the investor to assess the value of the asset and to verify the information pertaining to the asset in order to determine whether to proceed with the transaction. Due diligence process also permits the buyer to determine if there are barriers or risks associated with the transaction. Accordingly, the transaction is usually conditional upon the due diligence process being completed. Technical due diligence exercise is generally completed in two to four weeks depending on the availability of information and size of the asset. Colliers International (India) offers comprehensive technical due-diligence and advisory services to Developer/ Occupiers and Investors. The expert team at Colliers comprises professionals with vast experience in conducting audit of civil/ structural works, building services, approval and compliance, land due diligence and environmental impact studies and boasts of a proven track record of more than 125 assignments collectively.   Transformation Challenges & Potential Financial institutions, investors, owners and occupiers are increasingly demanding Technical Due Diligence reports which thoroughly details the physical condition of the asset to reduce the risks associated with the transaction. Since most of the real estate transactions are high value in nature, it is critical to ensure that the technical due diligence associated with the transaction is conducted in a complete and thorough manner. The due diligence process, conducted properly, provides complete understanding of the statutory approval status, building norms and compliance, quality of the construction, health and active and passive (if any) equipment’s installed, etc. and an analysis of any risks associated with the same.   Read More in Realty+ 15th Anniversary  

Tags : Interviews Real Estate FDI Colliers International India REIT NRI INVESTMENTS Argenio Antao Securities and Exchange Board of India global real estate Realty+ 15th Anniversary