INFRA

Thanks to fresh investments, supply and interest this sector, the Indian logistics industry is set to reach the next level. Although India is down the rungs on the Logistics Performance Index (India stood 35th among 160 countries in World Bank’s 2016 study) in comparison to some of the top regional markets, launch of GST and huge investments from global players will help the sector grow manifold.

Interestingly, logistics in the Asia Pacific region is performing well in comparison to other global counterparts. According to the 2016 World Bank survey on trade logistics, top regional markets such as Singapore, Hong Kong and Japan feature near the top of a global league of 160 countries in terms of logistics performance, alongside markets in Europe and the United States.

By now, it has become quite clear that as a generation, Millennials have a very different take on homeownership than their parents and grandparents did. This trend has been studied extensively in the West, but it has made itself quite obvious in India too. How do Millennials view home purchase differently in general, and in India in particular?
 
Different Strokes
 
In the first place, this is a generation of people who were hands-on with technology from childhood onwards. Social media, Google and the blog universe have been part of their life from the word 'go'. Millennials also display a much higher ability to adapt and accommodate than the previous generations, which is why co-working has become such a relevant concept in India today.

Affordable housing schemes for the middle and lower income groups are finally on a serious growth curve in 2017, with huge demand in both segments now also being met with increasing supply. It may seem strange that massive demand and massive unsold residential inventory can coexist, but this is in fact the result of pricing mismatch. The maximum demand for housing in India has always been and continues to be in the affordable segment where property prices range from Rs. 15 lakhs to Rs. 50-60 lakhs, while a huge number of ready-to-move projects in cities like Mumbai are priced upwards of Rs. 1 crore.

Across most key Indian office markets, secondary business districts (SBDs) are emerging as the new favourites of occupiers due to the availability of larger floor plates and latest amenities that suit most occupiers’ requirements besides offering options in superior grade-A assets to the discerning occupier. In the more traditional markets such as Mumbai and Delhi, the SBDs have been seeing more occupiers move in, at the cost of their CBDs.

Considering the capital-intensive nature of the commercial real estate sector as an investment avenue and also the limited investment opportunities with regards to high-grade office assets, REITs (Real estate investments funds) will be a big boon for the Indian real estate industry. In simple terms, a REIT is an investment tool that owns and operates real estate assets and even allows individual investors to invest in and earn income through partial/equity level ownership of commercial real estate without actually having to buy those assets.