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Flexible workspaces in India grew at a CAGR of 38% from 2017 to 2019, with many local and global operators entering the space, led by increasedFlexible workspaces in India grew at a CAGR of 38% from 2017 to 2019, with many local and global operators entering the space, led by increaseddemand from corporate occupiers or enterprise clients. As of end-February 2021, the total flexible workspace stock stood at 30 million squarefeet (2.8 million square meters), across the top six Indian cities. Due to muted demand amid uncertain conditions, 2020 saw flexible workspaceoperators lease 2.9 million square feet (269,000 square meters) of space, down by 75.8% from 2019. This was about 8.5% of the total leasingrecorded across the top six cities. Bengaluru, Hyderabad and Mumbai accounted for the bulk of transactions as some operators expanded theirfootprints, mainly in decentralized locations. Further, deals totalling around 1.7 million square feet (158,000 square meters), which were precommittedor in the final stages, were cancelled across the top six cities.
As of March 2021, about 65% of the desks on offer are leased, across the top flexible workspace operators’ portfolios. Though the bulk of thisspace is occupied by established corporates as opposed to freelancers or start-ups, and we think there is still scope for enterprise clients to takeupmore flexible workspace as operators are offering attractive prices for large or multi-location deals. The leasing period is currently about oneto two years as firms look at flexible workspaces as a temporary solution to accommodate their workforce until they finalize their expansion andfootprints beyond 2023.
Download the Report Read MoreIn their latest outlook report for 2021, Colliers estimates that institutional investments in Indian real estate will grow by 14.6% to INR 396 billion (USD 5.5 billion) from INR346 billion (USD4.8 billion) in 2020. For comparison, 2020 had witnessed a drop of 23% from 2019. Colliers believes that institutional investors continue to be bullish on Indian real estate asset classes such as offices, data centers and warehouses and they are looking to deploy their existing dry powder.
“The investment climate in India is very buoyant with global investors’ interest in real assets getting stronger. With global interest rates at historic lows and positive net yields in India, the country has emerged among the preferred destinations for investments in real estate. Further, the resilience of the Indian market is also evident from continued good housing sales performance across various markets, the large institutional investments in commercial office and industrial parks, and the listing of two REITs in the past six months.”
Download the Report Read MoreThe Development Bureau of the HKSAR Government recently announced a pilot scheme which standardizes land premium calculations for old industrial buildings undergoing redevelopment to other specific uses. We welcome the new scheme as it provides clarity for investment decisions, significant time and cost savings, and encourages more efficient land use to address social needs. Old industrial buildings that sits on Residential or Comprehensive Development Area (CDA) zoning will be most sought after following the implementation of the scheme.
Download the Report Read MoreThe Retirement Census is an annual data collection proces conducted amongst Australian retirement village operators. It covers retirement villages governed by state Retirement Villages Acts, rather than other forms of seniors’ living accommodation.
The 2020 Retirement Census covers FY20 (July 2019 June 2020). From March 2020, Australian businesses across all sectors have been significantly impacted by COVID 19 induced government restrictions on operations, employment, and service provision. Participation in the Retirement Census is entirely voluntary, meaning participating operators change year to year. Comparison with previous year figures should be considered with this in mind.
To view the cenus please click below:
Download the Report Download the Report Read MoreReturn of institutional capital and increasing industrial investment deals
Institutional investors and real estate funds sped up their hunt for industrial assets. In fact, among the aforesaid HKD1.9 billion transactions, all were acquired by funds or institutional investors. In January 2021, Kailong, a fund manager active in Greater China, acquired Hang Fat Industrial Building near Lai Chi Kok station. This property is expected to be redeveloped into a new industrial office building3 . Another pan-Asian fund manager, SilkRoad, also purchased Smile Centre near Fanling station, which is currently leased for logistics use. Meanwhile, Goodman purchased ground floor to fourth floor of Seapower Industrial Centre in Kwun Tong, with cold storage facilities, for HKD570 million (USD 73.5 million).
Looking into 2021, we believe institutional capital and funds will become more active again, given the pent-up acquisition requirements that have piled up over the last 18 months due to the market uncertainties, which now seem to be easing. Compared to the retail and office sector, industrial properties demonstrated a high level of resilience and stability in terms of rents and capital values. Meanwhile, the industrial Revitalisation Scheme 2.0 also presented investors with redevelopment opportunities, and some investors are eyeing the relaxed plot ratio restrictions to improve the return on their investments with higher floor area ratios.
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