Overall, Union Budget 2019-20 is a balanced one with more of a long-term vision as a follow-on of the Interim Budget. It has obviously been formulated to restore confidence in the India growth story as a whole, and more importantly within India Inc.
Can you build a long term portfolio successfully with the help of shorter term trading plans? Are you hedging it right?
PE players put only USD 60 mn into student housing in last 2 years; segment could see more interest in next 1-2 yrs Insufficient developer participation despite opportunity to diversify residential portfolios Sector still nascent and fragmented; top 10 student housing players together operate >75,000 beds across cities Cities with max. student housing demand are Bengaluru, Pune, Mumbai, Gurgaon, Hyderabad & Chennai, smaller towns include Kota, Dehradun, Coimbatore, Lucknow & Jaipur
Top 7 cities comprise 72% share while Tier 2 & 3 cities to see 18.2 mn sq. ft. of new supply; MMR, Delhi-NCR, Hyderabad & Bengaluru to see highest supply. Nearly two-thirds of total new supply (40 mn. sq. ft.) to hit the market by 2020. Indian retail sector attracted US$ 1.9 billion PE funds between Q1 2015 to Q1 2019 (over 60% inflows in 2017 & 2018). PropTech disrupting Indian retail space; may soon drive mall leasing apart from design, customer experience.
The Karnataka government has proposed to ban construction of new apartments in Bangalore for 5 years. This is a harsh scenario to ponder, considering that the reasons that led to its need are haphazard over-construction and negligence to implement proper water management. While these were certainly preventable reasons, let us examine this in the light of possible implementation.
Bangalore housing sales rose by 80% in Q1 2019 against Q1 2017, unsold stock declined by 44% City’s inventory overhang declined from 42 months in Q1 2017 to 15 months by Q1 2019 end; new supply rose by a mere 39% 31% NRIs see Bangalore as most preferred city for investment – ANAROCK Consumer Sentiment Survey
High real estate costs have already kick-started concepts like coworking and coliving in the office and residential spaces. It was just a matter of time before the F&B sector came up with its own real estate cost-saving recipe.