The India economy in 2016 will be amongst the fastest growing economies in the world, thereby generating significant interest from investors and corporates. With inflation being broadly under control, the monetary policy easing cycle is expected to remain accommodative; with the Government expected to focus on instigating structural reforms. While 2015 ushered in numerous reforms across sectors, high hopes are riding on the 2016 budget with respect to key policies and reforms. This spells positive for the real estate sector with opportunities for landlords, tenants and investors:
- Office: Corporate leasing is expected to remain strong with occupiers expected to remain focused on pre-leasing spaces in under-construction projects. As operational and financial efficiencies gain significance, focus on efficient workplace strategies will be accentuated.
- Retail: F&B and fashion are likely to dominate transaction activity and the addition of supply in key markets is likely to pave way for more global brands in India. Shopping centers will focus on the “experience factor” to tackle the threat from online shopping.
- Investments: While mezzanine financing will continue, equity structures will become increasingly popular, especially in big- ticket transactions in commercial assets