Take-up in the logistics and retail property sectors was also strong, while domestic capital is starting to play a more important role in the investment market, underpinned by regulatory and structural reforms. “India’s trajectory looks and feels very positive,” said Greg Hyland, head of capital markets, Asia-Pacific, at CBRE.
The country’s residential market is performing even more impressively, with the annual volume of units launched last year hitting a 10-year high and prices growing in all the major cities, according to Knight Frank data.
The combination of stronger demand, tighter supply, higher yields and better prospects for rental growth than in the office sector creates attractive investment opportunities. The results of a leasing sentiment survey published by CBRE last month revealed stronger appetite for expansion in retail.
Yet there are bright spots and sources of resilience in Asia’s real estate industry. This resilience can come at a price, as is the case in Australia’s housing market. However, it can also create significant opportunities.
Nicholas Spiro is a partner at Lauressa Advisory