Word on the street was that India’s November 2016 demonetization of high value currency notes would have a significant impact on the real estate price; here is what the experts say:
Forbes reports that 2017 will be a bumper year for India’s real estate market as well as for its economy. The country tops the list of preferred destinations for investment in property by institutional investors.
The middle class in India, the driver of the surge in domestic consumption, has very little household debt and is looking for suitable housing. The finance industry is supportive and India’s central bank has repeatedly cut interest rates. All these factors are promising trends for investors in the realty market, and for 2017 Bangalore and Mumbai are the top-ranked cities for both investment and development, according to the 2017 version of Emerging Trends in Real Estate Asia Pacific, put out by Washington D.C.-based Urban Land Institute.
India is seeing a boom in business-park development, and suburban development is creating new business and residential neighborhoods. Blackstone of New York City, the Toronto-based Brookfield Asset Management, privately-held Chinese conglomerate Dalian Wanda are seriously interested in property assets in India.
Anuj Puri, chairman and country head of Jones Lang LaSalle India says: 2016 saw the biggest changes in decades, especially on the policy front – the Goods and Services Tax and the Real Estate Regulatory Authority bill cleared hurdles, and are on their way to implementation. REITs will help smaller investors to invest in Grade-A commercial real estate across India. India’s first REIT listing will happen in 2017.
India’s Tier-I cities moved up to the 36th rank in JLL’s biannual Global Real Estate Transparency Index in 2016 due to improvements in structural reforms and liberalization of the foreign direct investment policy. India came 4th in developing Asia in terms of Foreign Direct Investment inflows per the World Investment Report 2016 by the United Nations Conference for Trade and Development. Thanks to a proactive government keen on improving India’s ranking on different indices and strengthening public institutions, the country is poised to become a modern economy.
As the real estate market achieves higher transparency, the mismatch of demand/supply can offer opportunities for developers and investors alike. Indian real estate is on its way to becoming a consolidated and moderately efficient sector over the next few years.
December 30, 2016 No Comments
In an interview with the Economic Times’ Healthworld, Dr. Richard M. Eglen, vice president and general manager of Corning Life Sciences, discussed the company’s business growth in India.
On Corning Life Science’s business in India
Eglen: India is one of our fastest growing markets in the Asia Pacific region. As a market, India has shown great potential and continues to grow significantly and drive growth for Corning Life Sciences outside of the U.S. With India’s population slated to reach 1.4 billion by 2022 (per the 2015 UN Report on World Population), this growing population demands not only large-scale production of vaccines, but also research for newer vaccines relevant to India.
Corning’s bioprocess products provide a full range of tools to successfully perform vaccine scale-up and production. Our cell culture products are of great interest to Indian pharmaceutical companies.
On Corning’s India’s revenue share
Eglen: The total sale of Asia represents over 50% of Corning’s total sales of US $ 9.1 billion worldwide in 2015. We can also tell you that we have more than doubled our revenues in India since 2009. 2015 was our strongest performance in Corning Life Science India history and we have kept the momentum going in 2016.
On future plans for the Indian market
Eglen: The Indian pharmaceutical market is currently at $25 billion and is expected to continue to grow at a CAGR of 12% till 2020. India is 3rd largest pharmaceutical market in the world by incremental growth and 7th largest by volume which gives Corning Life Sciences an immense growth opportunity. We have opened a warehouse for life sciences products for Indian customers in Mumbai which shows our commitment to be a reliable supplier for our customers in India.
December 29, 2016 No Comments
With Android phones dominating the India market, Apple is planning to consolidate its logistics operations, set up a dedicated distribution center for iPhones, iPads and computers in India reports the Economic Times.
Citing two senior industry officials, the report says that Apple is turning to its global logistic partner and one of Europe’s largest logistics companies, D.B. Schenker, to set up operations at Bhiwandi near Mumbai.
This distribution center in India will ensure the availability of Apple products at retail stores and set a common pricing for offline and online sales. This will ultimately enable the company to exercise greater control over the supply chain of its products, reports The Tech Portal.
Five months ago, during an earnings call, Tim Cook said: “India is now one of our fastest growing markets. In the first three quarters of this fiscal year, our iPhone sales in India were up 51% year on year. We’re looking forward to opening retail stores in India down the road, and we see huge potential for that vibrant country.”
December 23, 2016 No Comments
Camarillo, California-based Semtech Corporation has teamed up with Tata Communications to launch India’s first applications center to facilitate LoRa, or long range networks, technology in Mumbai.
The Economic Times reports a joint statement by the two companies which said that this center will allow enterprise customers and Internet of Things solution providers to deploy and test their applications over a LoRaWAN-based low power, wide area network. As many as 35 IoT applications can be deployed across Bangalore, Delhi and Mumbai. Research firm IDC estimates that the global IoT market will grow to $7.1 trillion by 2020, up from $1.9 trillion in 2013.
“The current LoRaWAN-based network allows millions of devices to be connected, and our goal is to have 200 million end devices connected by 2019,” V.S. Shridhar, Senior Vice President and Head – Internet of Things, Tata Communications said.
December 22, 2016 No Comments
The Trump Organization has more active projects underway in India — at least five — than anywhere else outside North America, reports NPR. And even if Donald Trump goes through with his declaration that he will exit his businesses to avoid any conflict of interest arising from his global enterprises, the entity in charge of his business will likely reap benefits from the Trump name.
In India, Trump’s partners in real estate (where the Trump name — in gold — graces projects) pay the Trump Organization for use of the Trump name, which to many, is synonymous with quality. So though he has not invested in these properties, the Indian brand-licensing agreements have the potential to earn the Trump Organization at least several million dollars says Ramesh Jogani a Mumbai-based real estate developer. Priced at $2 million for each unit, construction is underway at the 75-story, gold-facade Mumbai Trump Tower, with half of the 412 units already sold.
However, Mumbai property consultant Gulam Zia predicts, “Any permission, any license, any favor that this product attracts because of the brand will be noted, magnified, spoken about, debated and fought over in the media.”
December 18, 2016 No Comments