Transition in commercial property from the year 2018 to 2019! The investor seems to be making good profits, As the future of Indian commercial property in India is scaling greater heights.
The strength of the best commercial real estate project across India is improving due to the strong political stability and flexible stances in the monetary policy related decisions by the governments.
The current 2019 market trends are producing positive outcomes as the investor sentiments are high.
The instability of the financial market adds to it further.
Whatever be the situation, it is quite likely that both investors and tenants will join hands and come together in trying to bring in more flexibility in the circumstances which in turn will enhance their portfolios.
With strong political stability in place, the future of Indian commercial real estate sector investment is brighter than ever. There is no second thought that this is the right time to enter the sector as the markets will move on the upward curve from now.
However, investors will focus more on structural trends like modern logistics, data centers and commercial prospects which be more beneficial in the long run.
The Larger Picture:
India and China are the two pillars that contribute to the growth engines of Asia Pacific. The market sentiments of both countries are way different from each other.
In recent times, India has surpassed China as the world’s fastest-growing major economy.
Not only this, India has taken a step further and has successfully structured its own REIT market. That’s precisely is the reason why foreign investors get attracted to making investments in India.
In the past few years, there has been a spate of reforms in the real estate sector. Right from the advent of RERA to GST, the implementation of overarching reforms has resulted in improved levels of transparency and accountability.
It has been observed that investors have different attitudes in their approach to India.
When it comes to making investments in India, the foreign investors diverge from debt financing toward equities.
The other regional markets of Asia Pacific apart from India and China are also grabbing the attention of foreigners.
It is mainly because in these other markets there is an interesting connection between a drive toward omnichannel retail and spike in the logistics sector. A new revolution of the landlord-tenant relationship has emerged due to this linkage.
India to continue to lead the global commercial real estate investment markets in 2019
The increasing strength of tech companies and flexible space providers are some additional factors that drive the Indian, Chinese and other key markets of Asia Pacific.
The Foreign reserve levels of Asia Pacific market region is far better now than what it was in the past. A whole new set of circumstances will decide the resilience of the Asia Pacific market.
Since there is sustained growth in the economy chances of investors getting uncertain are high. Both occupiers and investors are probable to rethink their strategies in terms of both portfolio composition and allowing for greater agility.