The Future Of Logistics Real Estate in India

India logistics real estate is soon to be addressed as an asset class worth investing in. Accompanied by fresh investment and supply the logistics real estate market is set to score a fortune in the coming days. Several foreign investors and realty players are ready to pour it on Indian logistics industry. The implementation of GST will additionally draw the attention of global investors towards it which help the sector to have headway in future. Currently, India has a requirement for major business hubs in out-skirt locations with necessary connectivity. However, urban logistics are reasonably smaller in general.
When it comes to logistics, space is considered a huge component. The average space required for logistics asset is 10,000 sq.m. Again, it depends on the business requirement. Since, logistics property is a huge investment; it should fulfil the requirement of its tenants. Supply chain, transportability, and networking determine the turnover of the sector. Another decisive factor in logistics real estate investment is usability. Logistics spaces are widely used for storage, manufacture, and cross-docking. Though it’s still at a conceptual stage, but ‘Multi-storey’ distribution centre could be a vital solution to accelerate the potential growth faster. So much futuristic approaches in logistics real estate render a great alternative investment sector for the potential investors.

Logistics and warehousing demand has been increasingly fuelled by growth in buying sentiment and super success of e-commerce. Surprisingly, Asia Pacific logistics business earns better revenue in comparison to other international counterparts. So far, major players such as- Ascendas-Singbridge, Assetz Property Group, Logos, Canada Pension Plan Investment Board (CPPIB) and Everstone Group have invested in this sector for their further business development. Logos and Assetz Property Group jointly set up a logistics and warehousing platform which will invest about $400 million, as equity, to build and direct dedicated logistics and industrial parks. Starting with key logistics hubs of Mumbai, Pune, Chennai, Bengaluru, Hyderabad, Ahmedabad, and the National Capital Region (NCR) Logos India will cover investment, development and asset management of modern logistics assets.

“Whether it’s a rented property or an owner-used logistics real estate has its steady pace of business expansion. E-commerce and start-up sectors are turning the demand of small logistics space up. Thus, an increasing requirement has been observed for sustainable construction solution. In collaboration logistics, real estate will have substantial revenue contribution in country’s economy, followed by a stable employment extension,”- said Mr. Mahesh Somani, Head- East Zone, National Association of Realtors India (NAR).
The market is on an exploration spree for building logistics centres close to the Central Business Districts (CBD). Here the market looks forward to the intensification of the constructional activities and the realty development works. Amazon and DHL have already secured their investment in Indian industrial warehousing sector. GST roll-out is having a positive impact on Indian logistics industry. Several logistics companies have been built around the highways and around 7.3million sq ft of warehousing space were leased in the first half of 2017 across major cities in India.

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The Future of Hospitality Real Estate in India

Tourism in India is driven by the rich historical and traditional heritage and topographical assortments spread across the country. The future of the hospitality industry inherently related to that of the tourism industry with both foreign and domestic travellers playing an important role in its rise. The industry is witnessing significant growth in every year with its changing business models and distinctive perquisites. The biggest reason behind this boom is India’s overall development as an emerging, favourable business destination in South Asia. The potential advancement in the hospitality sector has been attracting major global hospitality players towards the country.
The Hospitality industry in India is one of the brisk expanding industries at present. It’s expected that the tourism industry single-handedly will be contributing about Rs. 9-10 lac crore by the year of 2020. The six rotating seasons of our country returns this industry huge take home. With the changing mindset of Indian travellers, there are numerous luxury resorts and boutique hotels have been mushrooming per diem. Both the domestic and international travellers visit has severely increased over the last few years. Tourism is also a large employment originator apart from being a pivotal source of foreign exchange for India.
India is currently having more than one lac hotels. While there are established Indian names like- ITC, Oberoi, Leela and Taj, there are major international brands such as – Hyatt, Marriott, Starwood SPG, Carson Group, Accor Hotels, IHG, Zinc etc. have tapped the market of Indian hospitality business. Besides, there are multiple branded aggregators like Oyo Rooms, Zo Rooms, Vista Rooms, Trivago and others are delivering state-of-art service to expand the prominence of the industry.
In a bid to widening the landscape for the international players, the government has allowed 100% FDI in the hospitality and tourism sector. The industry will see more foreign hospitality brands investing in India in the coming days. Hospitality market in India is going to own many partnerships and tie-up business between different domestic brands as well.

With the changing market scenario, customers have become more price-conscious and they sought for better value for their investment throughout the experience. Hotel Industry is now approaching budget accommodations under their existing brand value thereby making the service available on a larger scale. Other than their core business, hotel industry will also be focusing on other avenues such as- event management, transport services, and other auxiliary services. Thus, they are zooming in tier II and tier III cities for their business expansion. Reportedly major global brands like- IHG, Starwood, Zinc InVision and Hotel Behemoth expressed interest in launching branches aiming the mid and luxury market segment. Along with the supply of the construction materials, sale and lease of commercial lands will be integral parts of this business expansion. This business evolution will concrete the alliance between the domestic real estate development houses and the international hospitality players.

“Hospitality industry currently envisages budget-friendly, standardized accommodation which could be a positive benefactor to the real estate industry. The industry is currently exploring development alternatives in tier II and tier III cities and that would spur the growth of urbanization as well as infrastructural development. As more big names are aiming towards India the better constructional and architectural progress will be assured and it will annex country’s present economic standing”- said Mr. Mahesh Somani, Head- East Zone, National Association of Realtors India (NAR).

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GST- A Complex Diktat To Small Market Players

GST now has added further trouble for real estate raw material suppliers. As the product itself, as a sample doesn’t attract GST but the freight and the packaging materials are payable under GST. Ever since GST came into action all realty stake holders are in a whirl of become eligible as GST complaint.
According to the small-scale suppliers the compliance cost higher in GST regime. The market analysis says that all SME vendors are needed to well-trained and advised to claim the transition provisions of GST under section 140 and claim input tax credit under Form GST TRAN-1.
After GST implementation almost 2 months are gone. But real estate sector is still finding it tough to grip the entire groundwork of the tax reform. It’s getting difficult for the real estate players working with the vendors and SMEs and getting them becoming GST-compliant as both the developers and suppliers are having vague insight of the newly introduced taxation regime. All the stakeholders have to upload their GST payment details; failing of compliance will indicate that they won’t be eligible to redeem input tax credits. Where realty players upload their documents it’s turning out to be the most complicated task for the SMEs and vendors just to understand this mechanism of uploading the tax details.

“SMEs and Vendors are people who are not technologically really well cooked. Thus the entire taxation regime appears to be highly unsettling for them. Besides it’s a monstrous task for the builders or brokers to make these people well-adaptable with the newly-introduced central policy. Firstly the prime real estate stakeholders should cope with increased compliance and revised costs under the new tax regime. Then the course of the transaction will consequently ease up,’’-said Mr. Mahesh Somani, The Chairman – National RERA Committee, National Association of Realtors India (West Bengal).

Complete awareness of the GST is the cry of the moment. Unless the entire demand and supply chain will be fully-equipped, the bewilderment circle will be getting bigger. GST is supposed to be the single taxation system, but it’s not as simple as the hot air. Where larger real estate houses have created systems to tackle regulatory changes, problems have been increased for the SMEs and suppliers. Still, GST benefit will take longer to be passed through the end-users, as there is still lack of preparedness in the market persists. While output is being charged at GST rates as relevant, computing input credit, filing GST returns, getting previous service tax and excise offset/credit, among others, is rather complicated to the realty dealers. There will be inflationary pressure, inadequacy in cash management and associated costs, which will inflict margin and liquidity pressure as well. Thus, real estate companies are insisting vendors and suppliers furnish invoices. There should be a well-designed frame-work to educate realty stakeholders and enables the vendors to comply with the updated tax frame.

– LNN (Liyans News Network) Solving your real estate requirements over 25 years. Use the category post your property requirement in Kolkata to share your property needs with us. We will get you the best alternatives against your budget and property requisite.

Why Should You Buy Flats In Tollygunge?

Named after Major William Tolly, Tollygunge possess the film industry of Bengal. The entertainment industry has a nick name given by American Cinematographer Wilford E. Deming i.e. Tollywood (named after movie industry of USA Hollywood). Tollygunge used to be the centre of Indian movie business. Bengali cinemas and cinematic sense have been acclaimed by the global audience. Thus, this has been one of the highly popular areas in Kolkata for eternity.

Coming to the housing demand of this locality Tollygunge, being under Jadavpur parliamentary constituency, this area has a healthy demand for luxury and mid-budget apartments. Being a well-planned locality Tollygunge is the connector of north and south metro stations. This is an amazing place in south Kolkata, where there are every required luxuries and urban facilities all around. The average price of the luxury residential units is epidemically going up. Tollygunge is turning out to be a realty market driver, as 30% of the luxury and mid-budget housing requirement comes from Tollygunge and around areas. Presently, the requirement of luxury apartments in Kolkata is down by 4%. Yet, south Kolkata has always been relatively up-and-coming in terms of market demand, shows the spilling queries under Post Your property Requirement in kolkata category of several leading property sites in Kolkata.

Obviously good road and metro connectivity highlight the investment point. The housing demand owns a mixed bag requirement for luxury apartments as well as individual ready-made houses. Resale business is also in a stalwart position in this locality. Many noteworthy places of luxury interest points such as- Tolly Club, Royal Calcutta Golf Club and Rabindra Sarobar multi-used stadium are just round the corner. This area is having close to 25 reputed academic institutions. The most prestigious Jadavpur University is just at 15-20 min travelling distance. Upper-scale, lifestyle malls and retail shops are not far from this location. Remarkable health care centres and hospitals are at close proximity.

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Recently, several upcoming luxury projects in Tollygunge have been talks of the town. One of them is The 1, Tollygunge, developed my esteemed Merlin Group. The giant luxury project is aimed to be handed over in Dec’21. This is one of the high-end projects possessing luxury 2/3 bhk apartments, whopping 398 units in total. The project consists of 3 high-rise towers with connecting roofs.

Not only, the new-build apartments average rental yields is also close to 2.2% in this locality, which means rental apartments are also quite affordable here in comparison to the other in demand locations of the city. Location and connectivity advantage have made Tollygunge an engaging place for residential investment. We’re giving information that brings a real insight into today’s realty market of south Kolkata and around areas. Meanwhile keep yourself updated with the new launches in the city that are essential for your luxury lifestyle. If you desire to live in a better environment; do your investments fast before the prices start going through the roofs.

-LNN (Liyans News Network)- To have more information regarding the property in north Kolkata and the south please visit our official real estate portal of Kolkata. Buy/Sell/Rent properties online with us.

Dream Home Can Put You In Jeopardy? All We Can Do Is To Alert Buyers

Not really far from now, we found an investor (unwilling to disclose his name) who invested in high-end project in Kolkata and repenting his first home purchase. Not only in Kolkata, this is a common story throughout the world. This happens when the buyers easily get into the loop of the appeal. It’s mostly for the higher returns from the very purchase unit. Mostly people have seen chasing after handsome features and facilities within limited price range.Not always a low budget can hand over your desired fixtures from your choice of property. But it doesn’t mean if you buy cheap, you will get cheap.Getting cheap deal always demands further exploration. For example in Kolkata, if you explore flats in Rajarhat you will get a whole lot of attractive projects within your budget limit.

Impulsiveness is what should be strictly prohibited while purchasing an immovable asset. Definitely seeking an ideal property involves hastiness. But that doesn’t mean you overlook mechanical and structural issues as well as the builder’s previous track records. Experts say that people are running fast to get their dream home as they scare fueling market price and unpredictable market corrections. Often, people are caught amid the panoply of the realtors. Cross-checking the offerings have been eternally a buyer’s one of the prime duties. Read all the agreements before coming into any deal with the developer.

Property prices vary with the location and social infrastructure and the presence of alluring amenities. According to one’s budget limit he/she has to compromise anyone of these. All these components in combined make a property satisfactory. Thus, sacrificing one of these components can make your investment rather partial. Again, transportation nodes can give you some major stress. Distance from residence to workplace matters a lot while you are shifting into a new city. These days, there are brewing residential apartments with commercial provision attached. These apartments might cause a big hole inside your pockets. But, these are indeed favorable. We have seen many flats in Rajarhat are having the same configuration for providing superior comfort level to the working people, whose workplaces area at conveniently close.

Insufficient nearby facilities can lead you to waning. Always check out the local map before selecting a property. Modern homebuyers need school, college, hospital, markets at the close proximity to their residence. Eventually, most of the property ad display consist misleading information regarding transportation and infrastructure portrayal. Always double check their quality assurance.

Moreover, that the Real Estate Regulation Act (RERA) is about to enforce and all set to remove all misleading assurances by the developers and the realtors. They can’t even now advertise a property without having registered. If any builder are observed violating any regulation, proved with the valid documentation that person will be penalized by legal route.
-LNN (Liyans News Network)