Real estate activity has picked up momentum with unlocking of all activities across India. This has resulted in pre-Covid deals that were dormant to be consummated and new interest being generated in the market. However, demand played a large factor in guiding the growth plans of occupiers and investors which is yet to reach pre-Covid levels. As a result, the cap rates in commercial assets remained the same qoQq, while the retail cap rates in some geographies showed upward movement indicating eroding value due to increased vacancies and rents being renegotiated. The bright spot continues to be industrial assets, with the increase in interest resulting in rents modestly appreciating and vacancy levels holding in spite of new supply.”
By Ajay Sharma | Managing Director | Valuation Services (India) | Colliers International.