MUMBAI: In the interest of Institutional Investors in the Indian Warehousing Market, the government's first initiative, such as Make in India, implementation of Goods and Services Tax and the logistics sector infrastructure status, are increasing so many.
Global and local institutional investors have invested more than $ 3.4 billion in Indian warehousing in the last four years, which has remained unincorporated for a long time. During this period, about 26% of the total investment of private equity (PE) in real estate is shown, in a Knight Frank India study.
In the warehousing sector in 2017, leasing transactions increased by 25.4 million square feet, which grew at 35% of the year 2016.
The increase in institutional investors' appetite for warehousing assets and spike intent in leasing transaction leads to organized constitution due to rapid change in the industry, which leads to change in operating environment due to policy decisions.
"Because of this much happening in the matter of infrastructure status to the traction and logistics sector on the MAC-in-India program, GST, Industrial Corridor, real estate will be the real beneficiary of the time of arrival of warehousing. That is, before taking into account the opportunities in this field, investors He stream.
Interestingly, greenfield projects or new developments have invested more than 27% for the acquisition of these projects. This suggests that new investments are not locked up in ready assets but support the creation of new assets.
During the year, the National Capital Region (NCR) took the maximum measures in terms of transaction of 6.1 lakh sq ft lease in the place of warehousing, followed by 5.2 lakh square feet in Mumbai.
With the jump of 231% in Mumbai in warehousing space leasing in 2017, the biggest growth in the major Indian markets is registered. The NCR showed 117 percent increase in second place.
Experts believe that the increase in opportunities for investors will lead to further participation which will go ahead with the warehousing segment.
"While warehousing is getting more organized, there is still a need of local expertise to manage problems like land consolidation, building and tenancy arrangements. We can expect to build more connections to increase the potential of this asset class. Executive vice-chairman of Milestone Capital Advisors Ruby Arya states that due to the significant increase in the scale, the people of high net worth also The company is planning to fund the construction of a built-to-suite facility for e-commerce players.
Sectoral Perspective Manufacturing, third party logistics (3PL), and retail sector accounts for two-thirds of the share of leasing volumes in Warehousing space in 2017. While 3PL and manufacturing have been consistently in dominant fields, adopt retail equities as the third major market for warehousing in India.
"Post GST, about 100% of the demand has increased, the companies waiting to be seen and implemented in view mode." Balbir Singh Khalsa, National Director of Industrial and Asset Services, Knight Frank India, said that for the first time we inspected the integration and expansion of warehousing space. Going on
According to him, in areas like ecommerce, 3 pl, consumer durables, fmcg and manufacturing, with the increase in demand with large size warehouses, this field is open for more organized players.
During the year, Kolkata had registered 15% growth in leasing volumes for warehousing, while 90% in markets like Bengaluru, 86% in Ahmedabad and 68% increase in Hyderabad.
Global and local institutional investors have invested more than $ 3.4 billion in Indian warehousing in the last four years, which has remained unincorporated for a long time. During this period, about 26% of the total investment of private equity (PE) in real estate is shown, in a Knight Frank India study.
In the warehousing sector in 2017, leasing transactions increased by 25.4 million square feet, which grew at 35% of the year 2016.
The increase in institutional investors' appetite for warehousing assets and spike intent in leasing transaction leads to organized constitution due to rapid change in the industry, which leads to change in operating environment due to policy decisions.
"Because of this much happening in the matter of infrastructure status to the traction and logistics sector on the MAC-in-India program, GST, Industrial Corridor, real estate will be the real beneficiary of the time of arrival of warehousing. That is, before taking into account the opportunities in this field, investors He stream.
Interestingly, greenfield projects or new developments have invested more than 27% for the acquisition of these projects. This suggests that new investments are not locked up in ready assets but support the creation of new assets.
During the year, the National Capital Region (NCR) took the maximum measures in terms of transaction of 6.1 lakh sq ft lease in the place of warehousing, followed by 5.2 lakh square feet in Mumbai.
With the jump of 231% in Mumbai in warehousing space leasing in 2017, the biggest growth in the major Indian markets is registered. The NCR showed 117 percent increase in second place.
Experts believe that the increase in opportunities for investors will lead to further participation which will go ahead with the warehousing segment.
"While warehousing is getting more organized, there is still a need of local expertise to manage problems like land consolidation, building and tenancy arrangements. We can expect to build more connections to increase the potential of this asset class. Executive vice-chairman of Milestone Capital Advisors Ruby Arya states that due to the significant increase in the scale, the people of high net worth also The company is planning to fund the construction of a built-to-suite facility for e-commerce players.
Sectoral Perspective Manufacturing, third party logistics (3PL), and retail sector accounts for two-thirds of the share of leasing volumes in Warehousing space in 2017. While 3PL and manufacturing have been consistently in dominant fields, adopt retail equities as the third major market for warehousing in India.
"Post GST, about 100% of the demand has increased, the companies waiting to be seen and implemented in view mode." Balbir Singh Khalsa, National Director of Industrial and Asset Services, Knight Frank India, said that for the first time we inspected the integration and expansion of warehousing space. Going on
According to him, in areas like ecommerce, 3 pl, consumer durables, fmcg and manufacturing, with the increase in demand with large size warehouses, this field is open for more organized players.
During the year, Kolkata had registered 15% growth in leasing volumes for warehousing, while 90% in markets like Bengaluru, 86% in Ahmedabad and 68% increase in Hyderabad.
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