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Now the overseas firms such as; APG, a Dutch Pension Fund Manager and Warburg Pincus, a US Buyout Group are looking for an opportunity to invest in the Indian warehouses with a hope to cash the demand for efficient and modern storage space as in past few years Indian has recorded great book in online shopping.

Godowns vs Warehouses:

In present the country’s logistics and warehousing sector is stretched to $ 110 billion as more and more Indians are coming online for shopping and other activities. Existing spaces, which was famous with a name “Godowns”, a low rise sheds with poor infrastructure and ventilation to ward off heat and dust are too old and out of dated for the retail giant such as; Amazon.com and its core rival Flipkart or Snapdeal. According to experts retailers never prefer to use these Godowns because on these places goods frequently get spoil or soiled. Apart from that now e-tailers are looking for the way to move their goods swiftly with minimal damage and due to that they demands for climate control, levelled loading bays, fire sprinkler systems and paved roads to warehouses. If you have existing warehouse, so after adding these facilities you can lift the rents by up to 20 percent, as per the statement of the JLL, a real estate firm.

Growth in e-commerce sector:

According to Ben Salmon, Head of Singapore-Based Assetz Property Group, “We have got many people around us who have bags of money, but not that much assets”. The more he added that Assetz Property Group has raised $ 50 million from Asian investors with an aim to buy warehouses on Indian soil. Meanwhile, e-commerce sector in India is booming and it is expected that by the end of 2025 the market will grow in terms of value of goods sold will be about by $ 220 billion and it is expected that for this years the value of goods sold will be $ 11 billion, as per the reports of Bank of America Merrill Lynch. Demand of these kinds of warehouses is good news for property developers in India as most of the real estate developers are doing business with high debt and struggling with sluggish residential sales. For the duration of 2009 to 2011, the office leasing was slower.

As per the estimates of JLL India, to satisfy the above requirements, the supply of modern warehouses in India can be get double by 2020 with 200 million square feet space, which will be fuelled by online retailers as they have already taken up 20 percent of the space in the first half of 2015. The more demand will push the rents which are about 156 rupees ($2.34) a square foot a year in some city outskirts, but this rent can go up by the 20 percent, as per analysts. Whereas; in present, the average annual returns In UK for industrial assets are expected to be 10 percent by next five years, as per the reports of Colliers International, a real estate firm.

Needed facilities in warehouses:

In New Delhi, there are many steel-framed, large and modern warehouses, which have ventilation as well as 24 hour security, but retailers and logistics firms are line up to serve the country’s capital. Amazon is one among other retailers, who want to own large, modern, white and red warehouse as Godowns are increasing their size from family garage to a basketball court. It is noted that Amazon India has leased more than 20 fulfillment warehouse centers where company is used to store goods and packs the orders from many different landlords. However; still company is looking for bigger, modern spaces with the average size of 200,000 square feet.

The e-commerce has attracted more than $ 1.5 billion through private equity funds since year 2011, as per the data of Venture Intelligence. Whereas; Embassy Group and Warburg are jointly planning to invest $ 250 million to lease, operate and build a portfolio of up to 20 million square feet of warehouses in next 5 to 7 years, as per the statement of Anshul Singhal, CEO of Joint Venture and Embassy Industrial Parks.

According to Sachin Doshi, Head of its private real estate investments in Asia Pacific, “APG is also looking for a local partner who can invest in the build logistics parks in India”. No doubt there are some basic challenges for investors who want to acquire land as ownership cannot be disputed. Major real estate developers like; Assetz is betting on buying larger existing warehouses in the market rather than building warehouses from the scratch. After previous investments, now Assetz is planning to raise $ 100 million to buy 10 million square feet of warehouses space.

real estate developers in mumbai

We all know that Mumbai is the financial capital of the country and it is the city where most of the leading real estate developers have their head offices. According to recent survey Bengaluru based real estate firms are well impressed with the skills of those who are working in the Mumbai based real estate firms and due to that most of the Bengaluru based leading real estate developers are approaching to Sr. executives and consultants for the top position who are working for Mumbai based developers.

In last, one year more than 15 Sr. executives from the real estate firms of Mumbai have moved to Bengaluru. In the latest moves, Om Ahuja, CEO of residential services at Jones Lang LaSalle in Mumbai head office, joined Brigade group as the CEO of residential services in Bengaluru. However; 8 months before Ozone group hired the Srinivasan Gopalan on the position of CEO whereas; earlier he was the COO and CFO of Wadhwa group, a Mumbai based real estate firm. Bhavesh Kamdar was earlier with L&T Realty, but recently he joined Embassy group as the head of leasing department.

Om Ahuja, who recently joined Brigade group as the CEO of residential services stated that “In Bengaluru the prospect of joining new company and getting more exposure in real estate sector is much more and due to that I joined Brigade group, which has very good track record in building the best quality integrated townships. Apart from that Brigade group has been recently rated as the great place to work and due to these mentioned reasons I decided to move to Bengaluru and it was easy for me even after spending 20 years in Mumbai.”

Why real estate market of Bengaluru is attracting real estate professional?

In present, Bengaluru is witnessing huge growth in terms of property development as well as price of real estate market and due to that in past eight months of duration the city has witness the sales of more than nine million square feet in commercial space. These days Mumbai based real estate developers are focusing on the luxury residential and commercial development, whereas; in Bengaluru there is demand for office space and city has fuelled the demand for homes buyers as well. However; the city has accounted more than 49 per cent office space absorption in 2014.

According to the reports of Colliers International, Bengaluru has absorbed 13.77 million sq ft of office space in 2014. The Gopalan added that Bengaluru based real estate developers are transparent, professionals and they willing to share project ownership with other private equity firms. In Mumbai, CFO’s of the organizations run the whole show, but in Bengaluru it is the CEO who is responsible to call the shots with the focused operation.

Professionals are running Bengaluru based real estate developers and due to that they are interested in hiring the professionals on frontline. As per the real estate experts, the houses in Bengaluru are listed with the respected names such as; Prestige, Brigade, Puravankara and Sobha as well as some of the unlisted real estate developers such as; Embassy group, RMZ and more. Apart from all these as per the real estate experts companies in Bengaluru are offering better career and growth.

More than 15 Sr. executives from the real estate firms of Mumbai have moved to Bengaluru

We all know that Mumbai is the financial capital of the country and it is the city where most of the leading real estate developers have their head offices. According to recent survey Bengaluru based real estate firms are well impressed with the skills of those who are working in the Mumbai based real estate firms and due to that most of the Bengaluru based leading real estate are approaching to Sr. Executives and consultants for the top position who are working for Mumbai’s developers.

In last, one year more than 15 Sr. executives from the real estate firms of Mumbai have moved to Bengaluru, yet it is true that currently the sale of residential property and apartments in the financial capital of country is slow. In the latest moves, Om Ahuja, CEO of residential services at Jones Lang LaSalle in Mumbai head office, joined Brigade group as the CEO of residential services in Bengaluru. However; 8 months before Ozone group hired the Srinivasan Gopalan on the position of CEO whereas; earlier he was the COO and CFO of Wadhwa group, a Mumbai based real estate firm. Bhavesh Kamdar was earlier with L&T Realty, but recently he joined Embassy group as the head of leasing department.

Om Ahuja, who recently joined Brigade group, stated that in Bengaluru the prospect of joining new company as CEO in the largest division of Brigade group has credible track record and I think that experience in building the best quality integrated townships is responsible to list it in stock exchanges and it has been also rated as the great place to work from last few years and due to that the decision to move to Bengaluru was easy for me even after spending 20 years in Mumbai.

Why real estate market of Bengaluru is attracting real estate professional?

On the issue of moving to Bengaluru, the experts are saying that the real estate market in Mumbai getting saturated and due to that now it’s difficult to move the prices up. In Mumbai real estate investors have made just little money in past two to three years, but these days Bengaluru is witnessing the huge growth in terms of property development as well as price of real estate market and due to that in past eight months of duration the city has witness the sales of more than nine million square feet of commercial space. In Mumbai the property prices has been decline from 7 to 12 per cent from October 2014, with the total drop of 15 per cent on its peak level, as per the reports of Edelweiss Securities.

Current real estate market of Bengaluru:

These days Mumbai based real estate developers are battling high on the residential and commercial inventories.  However; the number of unsold residential and commercial units in the city was highest in India which was approx. 200,000 till December 2014. But it was expected that this quarter Mumbai will take more than 11. 5 quarters to sale its unsold inventory and NCR (National Capital Region) 13.8 quarters, while Bengaluru will take only 7 quarters. Still there is boom for office space and it is fuelled the demand for homes buyers in Bengaluru, however; the city has accounted more than 49 per cent office space absorption in 2014, according to the reports of Colliers International Bengaluru has absorbed 13.77 million sq ft of office space in 2014.

The Gopalan added that Bengaluru based real estate developers are more transparent, professionals and they willing to share project ownership with other private equity firms however; these are not the case with Mumbai based real estate developers. In Mumbai, CFO’s of the organizations run the whole show, but in Bengaluru it is the CEO who is responsible to call the shots with the focused operation.