INSUBCONTINENT EXCLUSIVE:
Commercial real estate will give better returns to investors, given its limited supply
But the residential part may feel the pinch, panelists at the ET Markets Global Summit said on Friday.
Real estate has been under pressure
over the last 10 years now
The situation has come to such a pass that margin of developers as well as investors has compressed due to lack of interest and rising
costs.
Addressing the distinguished gathering at the summit in Mumbai, Raj Shah, Associate Director, Kotak Realty Fund, said demand and
supply situation both looked good till 2012
inventory overhang in most cities
Now, on demand side, investors have almost vanished as end users are driving the market
Eighty per cent of real estate is residential in India
From investors' perspective, the return has come down drastically over the years
And from developers' perspective, inherent margins have softened due to increasing cost in terms of constructions, approvals and regulatory
chases this type of asset class, which also has limited supply
The yields are better than residential places
said the commercial sector was in the spotlight as most of the foreign money investors chased assets like co-working space for investment
Demand depends on investors' requirement
