Rubi Arya, Vice Chairman & Director, Milestone Capital Advisors Ltd A privately held alternative investment advisory firm, Milestone Capital Advisors Ltd specialises in developing highly innovative funds in the real-estate space.
India Ratings-Mumbai-10 January 2013: India Ratings has revised its outlook for Indian cement manufacturers to "stable to negative" for 2013 from negative in 2012, driven by limited downside risk for demand.
According to a Jones Lang LaSalle report, investors are increasingly putting in more capital into commercial real estate, particularly in the Asia Pacific region and direct investments in this segment are likely to more than double to $1 trillion by 2030. Investors are already responding to shifting economic conditions by funnelling more capital into commercial real estate, particularly in the Asia Pacific region, it said.
In a landmark move that will have wide-ranging implications for commercial real estate in India, the government has done away with the mandatory requirement of 10 hectares of minimum land area for setting up an IT/ITES SEZ. With immediate effect, the minimum built-up area requirements to be met by SEZ developers will be 1,00,000 square metres for the seven major cities, 50,000 square meters for Category B cities and only 25,000 square meters for the remaining cities.
A study by Knight Frank has said that Mumbai is the best city in India for commercial real estate investment, with returns of 12-19 per cent likely in the next five years. Bangalore and Delhi-National Capital Region (NCR) come second and third on the list, with returns of 12-12 per cent and 8-11 per cent, respectively, according to the report.
Commercial real estate developer AMR Group has now diversified into residential segment. It has launched limited edition homes in Pi-4, Greater Noida. AMR Group is a Noida-based real estate developer known more for commercial projects and IT parks.
Builders of commercial real estate are now adopting various means to boost sales and rentals. Builders like Kohinoor Square at Dadar are selling at Rs 20,000 per square foot for the smaller offices (1,000 square feet). According to Atul Modak, vice president, Kohinoor Square, the demand for small offices is great. He said the company sold more than 50 per cent in the first 15 days itself.
Mumbai's commercial real estate (CRE) stock is estimated to cross the 100 million square feet mark by the 4th quarter of 2014. The current stock stands at 87 million square feet. When it touches the 100 million square feet mark, the vacancy rate is going to hover at 22.2 per cent. When the city's supply of CRE reaches this milestone, the three largest micro-markets will be SBD North with 22 million square feet, Thane and Navi Mumbai with 21 million square feet and the Western Suburbs with 16 mil