With the return of confidence in the sector, Indian real estate players are now once again looking at private equity funding. That said, the industry still depends heavily on bank debt, NBFC funding and end-user advances. This is because bank debt is a cheaper option, and also because it offers flexible tenures.
With the provision of more entertainment options in malls, Indian retailers now have vastly enhanced their ability to increase sales. Until recently, street markets and bazaars were the top performers in the retail space, and they were cornering a huge chunk of the overall sales.
Faced with the prospect of new transactions, corporate real estate (CRE) managers have been analyzing the options of leasing versus buying a real estate space. In the recent slowdown, distinct trends have emerged among industry verticals while strategically choosing either to lease or buy real estate space. While the IT/ITES sector has been the front runner in terms of lease transactions recorded during 2H08-1H10, accounting for 41% of the total lease transactions, BFSI and Manufacturing / Industrial sectors have been dominant purchasers of office space during the same period.
Taking action on India’s environmental crisis is no longer an option – it is a necessity. Sustainable real estate presents India with an unique and enormous opportunity to make concrete progress in the country’s effort to improve its environment.
Naturally, the IT industry is not comfortable with seeing the STPI scheme go. It was slated for expiry in 2009, but the industry managed to wangle two extensions for it. The Government has provided an alternative in the form of Special Economic Zones.