Indian (Real) businesses have been suspended due to COVID-19, mainly residential. Experts believe that if the vaccine is introduced in FY21 then the commercial segment may see strong demand but the supply segment will continue to stay under pressure.
According to a report by Cushman & Wakefield, Commercial real estate has only been the best performing sector in the last 5-6 years, but also significantly affected 90% of rentals during the closure.
An international real estate company feels that if the vaccine is available in the market, there can be 25-28 msf insertions ( meters square feet), which are rented at high speed.
In addition, it said the commercial RE would see the foundation as it expected only 10-12 per cent of jobs to move to WFH due to the lack of infrastructure in India. Because of this, more office space will be needed per capita, which would support the overall figure.
In the case of retail and residential properties, the report said that re-selling RE will continue to push lower as 20-25 per cent as the online retail experience changes online.
The only space that can take a long time to get out of the forest is the RE residence, said Gulam Zia of Knight Frank. The lack of any government support remains a major issue in part, he added.
Explaining the market, he said it was a labor-intensive sector, and the backward migration would fill the vacancy, and this should continue in the short term.
In the case of raw materials, it feels like the supply side has already been disrupted due to COVID-19 and increasing awareness of the Chinese goods crash. In the meantime, commodity prices will not decrease as there is no room for them. However, inflation will restore demand and ease the issue of inventory hangover, he added.
Despite confirming all potential negative consequences for the sector, the Nifty Realty index has managed to surge 26 percent of operations since it March lows.
According to a report by Cushman & Wakefield, Commercial real estate has only been the best performing sector in the last 5-6 years, but also significantly affected 90% of rentals during the closure.
An international real estate company feels that if the vaccine is available in the market, there can be 25-28 msf insertions ( meters square feet), which are rented at high speed.
In addition, it said the commercial RE would see the foundation as it expected only 10-12 per cent of jobs to move to WFH due to the lack of infrastructure in India. Because of this, more office space will be needed per capita, which would support the overall figure.
In the case of retail and residential properties, the report said that re-selling RE will continue to push lower as 20-25 per cent as the online retail experience changes online.
The only space that can take a long time to get out of the forest is the RE residence, said Gulam Zia of Knight Frank. The lack of any government support remains a major issue in part, he added.
Explaining the market, he said it was a labor-intensive sector, and the backward migration would fill the vacancy, and this should continue in the short term.
In the case of raw materials, it feels like the supply side has already been disrupted due to COVID-19 and increasing awareness of the Chinese goods crash. In the meantime, commodity prices will not decrease as there is no room for them. However, inflation will restore demand and ease the issue of inventory hangover, he added.
Despite confirming all potential negative consequences for the sector, the Nifty Realty index has managed to surge 26 percent of operations since it March lows.
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