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India has long been recognised as a country with immense potential, but it was often hindered by bureaucracy and red tape. In recent years, however, India has made laudable strides, with its economic growth leapfrogging other major countries, in part driven by concerted government-led reforms and sector-focused initiatives that have shaped a more business-friendly climate, particularly for foreign investment.
Today, India has forged ahead into a new era, and the country holds much promise with the largest youth population in the world1 and the second largest labour force2 globally. Investors can look forward to sustained returns from key beneficiaries of these structural advancements, particularly in the Office and Business Park sector.
This report was originally published in https://www.capitaland.com/en/about-capitaland/newsroom/inside/2023/January/Riding_the_Growth_Impetus_A_Focus_on_Indias_Office_and_Business_Park_Sector.html
Download the Report Read MoreStorm Clouds Gather
Asia Pacific property markets face a number of battle fronts in 2023. The first is external to the region as the war in Ukraine combined with post-COVID supply chain disruption has fueled inflation causing central banks to raise rates and in doing so cool growth. This is nowhere more apparent than in the US and Europe, the final demand markets for Asia’s exports. The second is within the region itself and concerns its largest economy, China, which accounts for 53% of the region’s GDP and almost a third of all manufactured products. A low growth and, thanks to zero-COVID policies and a more assertive political direction, more isolated China, is depriving real estate capital of a universe of investment opportunities while funds flowing out of the Mainland have slowed to a trickle. The final battle front is longer term and structural and concerns how people work and shop and how new technologies are tearing down the old boundaries between asset classes while creating new ones in an orgy of creative destruction. Something familiar to markets globally.
Read MoreThis report aims to engage occupiers in their ESG journey, allow landlords to better align and develop stronger partnerships with their tenants, and guide occupiers to maximise their green potential through their real estate.
This report was originally published in https://apac.knightfrank.com/esgmattersapac
Download the Report Read MoreEconomy
The moderate recovery of the Japanese economy is expected to continue in 2023, driven by consumer spending and corporate capital investment. However, with the output gap still negative, the Bank of Japan (BoJ) has made it clear that it will retain its loose monetary policy for the time being. If the economic recovery were to lead to a rise in corporate earnings as well as real wages, thereby maintaining moderate inflation, the likelihood of a shift to a tighter monetary policy would increase. However, the consensus is that such a move, were it to eventuate, would not occur until H2 2023 at the earliest.
Office
While relocations to higher grade office buildings were on the rise in 2022, downsizings and consolidations were still widely observed, leading to a general upward trend in vacancy rates. As an increasing number of companies favor the implementation of hybrid working schemes, tenants are likely to become more selective than before with respect to office specifications. With increases in supply forecast for most cities, market rents are likely to continue to fall.
Retail
The Ginza highstreet market will continue to be driven primarily by demand from luxury goods brands in 2023. While high street rents appear to have bottomed and maintaining the low levels, they should begin to rise once again in Q4 2022 and continue to slowly increase thereafter.
Logistics
Unprecedented volumes of new supply is expected across Japan in 2023, due to the greater focus placed on logistics properties by developers. As a result, vacancy rates are expected to rise in all four metropolitan areas, despite continued robust tenant demand for logistics space.
Investment
Commercial real estate transaction volume in Japan for 2022 is expected to be slightly lower than the previous year’s level. Nevertheless, expected yields have continued to decline, indicating that investor appetite remains stable. Some investors have become more selective amid overseas interest rate hikes and concerns over a possible recession in US and Europe. However, the BoJ appears unlikely to tighten its monetary policy in the short term, and appetite for Japan real estate looks set to remain robust in 2023.
This report was originally published in https://www.cbre.com/insights/reports/japan-major-report-japan-market-outlook-2023
Download the Report Read MoreCBRE’s 2022-23 Global Fit-Out Cost Guide is the industry’s most comprehensive analysis of fit-out pricing globally. This year’s edition focuses on the global changes in work models and the challenges faced as a result of the pandemic, climate change and heightened economic uncertainty.
The global shift in workplace behaviors has resulted in new ways of thinking about the construction of offices. Companies have adopted hybrid work models, and people need a blend of flexible, team and event spaces. Likewise, many companies have set net-zero carbon targets, expanding real estate sustainability strategy beyond energy savings to include decarbonization and Environmental, Social and Governance (ESG) criteria.
But with the changes there have been challenges. The lingering effects of COVID-19 and the war in Ukraine have led to economic and supply chain uncertainty, which affects the fit-out market by diminishing budgets amid inflation and causing long lead times in procurement.
CBRE introduced our Fit-Out Cost Guide in 2013 as a benchmarking tool to support planning and investing in capital fit-out projects. This year our cost guide leverages more quality data than ever before, with input from strategic partners.
The 2022-23 guide provides insight into global market trends, with regional data from APAC, EMEA, North America and Latin America.
This report was originally published in https://www.cbre.com/insights/books/global-office-fit-out-cost-guide-2022-2023
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