News
Cap rates stabilize with 2.9 million sq.ft warehouse supply expected in Mumbai
Mumbai, July 28, 2023: Colliers released its Asia Pacific Cap Rates Report | Q2 2023, which
reflected most markets across the Asia Pacific region have showcased resilience over the
past quarter. The office market continues to make waves with the back-to-office shift, but
investors are still displaying a cautious approach given the global economic volatility. Office
rentals have remained flat QoQ and vacancy levels have risen slightly.
The industrial segment, on the other hand, is witnessing augmented demand, driven by the
flourishing ecommerce, manufacturing, retail, FMCG and 3PL sectors.
“The rentals across major micro- markets have remained unchanged. Absorption and vacancy
levels have remained stagnant Q-o-Q. However, with larger institutional players warehousing is
seeing traction and offering better returns to investors as compared to other asset classes.”, says
Ajay Sharma, Managing Director, Valuation Services.
Asia | Office | Retail | Industrial | ||||||
Low | High | QoQ | Low | High | QoQ | Low | High | QoQ | |
Mumbai | 7.75% | 8.75% | Up | 7.50% | 8.75% | Flat | 7.00% | 8.50% | Down |
Bengaluru | 8.50% | 8.75% | Marginally up | 9.75% | 10.75% | Marginally up | 7.00% | 7.25% | Flat |
While the cap rate still remains flat, the retail and hospitality sectors have been making a
healthy comeback post-pandemic, owing to increased consumption, higher disposable
income, and pent-up demand for business and leisure travel. “The Grade A space demand
has remained consistent as previous quarters though the occupiers are taking cautious
calls on the locations where the new stores are being opened leading to challenging
environment in certain micro-markets.”, adds Sharma.
Mumbai has emerged as the market with most movement, reinforcing the investor
sentiment.
-
News4 weeks ago
SKA Forays In Luxury Housing: Launches SKA Destiny One in Greater Noida, To Invest Rs 592 Crores
-
News4 weeks ago
How Noida-Greater Noida’s Infrastructure is Transforming the Real Estate Landscape?
-
News2 weeks ago
Faridabad Emerges as a Prime Real Estate Destination in Delhi-NCR
-
News3 weeks ago
E-Infra, Hero Fincorp Partner To Launch Elegant Nivasa Luxury Apartments
-
News3 weeks ago
Navigating Water Crisis: Innovations, Sustainability, and Developer Initiatives Leading the Way
-
News3 weeks ago
Tulip Infra Launches Tulip Monsella PhaseII Over Rs 300 Cr in Bookings on Day One
-
News5 days ago
Transparency Essential in realty sector to ensure its unhindered growth: Anand Kumar, Chairman, NCT of Delhi RERA
-
News4 weeks ago
FY25 Residential Demand, Price Growth to Moderate, Segment Bi-polarisation to Undergo Course Correction: Ind-Ra Report