Thursday, July 31, 2025
  • Home
  • World

    Global hunger declines, but rises in Africa and western Asia: UN report

    L&T Technology Services Wins ~$60 Million Software Engineering Engagement From US Tier-I Telecom Provider

    Roche provides regulatory update on Elevidys™ gene therapy for Duchenne muscular dystrophy in the EU

    Wipro Wins Multi-Year “Smart Grid” Deal from Saudi Electric Company

    Glion awarded prestigious Swiss Federal Accreditation

    Global childhood vaccination coverage holds steady, yet over 14 million infants remain unvaccinated – WHO, UNICEF

  • National
    • All
    • Economy & Politics
    • Election

    “World Tiger Day” celebrated.

    realme Launches 15 Series with Industry-First AI Edit Genie and Segment leading Performance

    ShareChat & Moj Announce Second Edition of ‘Short Form Big Impact Leadership Summit 2025’

    Prakash Varma to Inaugurate Creators & Marketers School in Calicut

    Himalaya Wellness Champions Bhringaraja in New Anti-Hair Fall Campaign with a Tale of Friendship

    L&T Technology Services Wins ~$60 Million Software Engineering Engagement From US Tier-I Telecom Provider

  • Business

    Thomas Cook India net profit stays flat at Rs 73.4 crore in April-June

    Nissan’s contribution to Renault Group’s second quarter 2025 earnings

    Punjab National Bank (PNB) announces First Quarter Financial Results for the Quarter Ended 30th June 2025

  • Health

    Apollo Bannerghatta Achieves 600+ Ultrafast Fully Automatic Robotic Knee Replacement Surgeries Under Dr. K.T. Rajashekar

    Government Strengthens Measures for Consumer Protection and Curb Unverified Claims by Ayush Product Manufacturers

    Roche provides regulatory update on Elevidys™ gene therapy for Duchenne muscular dystrophy in the EU

    “Every transplant at Kauvery is a commitment to giving life where hope is fading”-Dr. S Vijayabaskaran, Executive Director – Bangalore & Hosur.

    Global childhood vaccination coverage holds steady, yet over 14 million infants remain unvaccinated – WHO, UNICEF

    “The relaunch is our way of expressing gratitude to our early patrons and reintroducing the space with renewed energy.”-Mr. Arup Chatterjee Regional Manger South spokesperson from Barbeque Nation Hospitality Ltd.

  • Technology
    • All
    • Environment
    • Science

    Eveready Launches India’s 1st Ever Hybrid Torch with Sonakshi Sinha-starrer ‘Nikita Roy’

    Sony India launches WF-C710N earbuds with Dual Noise Cancelling and smart AI calling features

    HAL receives first set of wing assemblies for LCA Mk1A from L&T

    Emerson NI Days India 2025

    Industry leaders unveil innovative solutions for print, branding, signage and digital displays.

    “This University Is Not Just an Institution—It’s a Mini City of Engineers”: Union Minister Scindia

  • Auto

    ROLLS-ROYCE IN SAINT-TROPEZ: A SUMMER AT THE RIVIERA’S MOST DISTINGUISHED ADDRESSES

    Challenging half year – Audi realignment gains momentum

    Mahindra XUV 3XO ‘REVX’ LAUNCHED:

    Piaggio Vehicles brings in a new era of Apé Electrik; launches the all-new Apé E-City Ultra and the Apé E-City FX Maxx

  • Sports

    Four Seasons Hotel Singapore Serves Up a Luxury Sports Experience with Inaugural Summer Smash Padel and Pickleball Tournament Event

    Over 99% of Indian Children Want to Play Sports but 1 in 4 P.E. Classes Get Cancelled, Shows National Survey by Sportz Village

    Gulbarga Mystics to face Mangaluru Dragons in season opener of Shriram Capital Maharaja Trophy KSCA T20  

    ‘The corner defender is the pillar of the team:’ Yogesh Dahiya on his record-breaking Bulls move

  • Entertainment

    “Virgin Boys” – A Bold Telugu Youth Drama Captures Hearts Across Theatres

    A New Era in Luxury Weddings – Vogue Wedding Atelier Debuts in India

    GenS Life and Dowith Lit Present ‘Senior Spotlight’: Bengaluru’s Open Mic Celebration for the 55+

    PMJ Jewels Launches PMJ SuperStar Bracelet and ‘Celebrating Daughters’ Campaign

    ‘Waves’ an OTT platform that offers clean family-friendly content: Sunil Bhatiya, Deputy Director General, Doordarshan Kendra, Panaji

    Sri Sai Gold Palace’s 7th store inaugurated in Malleshwaram,Bengaluru.

  • Lifestyle
    • All
    • Food
    • Travel

    Apollo Bannerghatta Achieves 600+ Ultrafast Fully Automatic Robotic Knee Replacement Surgeries Under Dr. K.T. Rajashekar

    GKB Opticals Unveils Experiential Flagship Store in Bengaluru

    Arunachal Minister inaugurates IITM Travel Fair in Bengaluru

    Tata CLiQ’s Moments that CLiQ Sale across fashion, luxury and beauty is set to begin the celebrations for the festive season

    “Every transplant at Kauvery is a commitment to giving life where hope is fading”-Dr. S Vijayabaskaran, Executive Director – Bangalore & Hosur.

    Absolute Hotel Services Signs Second Landmark Property in Rajasthan — New Upscale Retreat in Ajmer Marks Strategic Cluster Expansion

No Result
View All Result
  • Home
  • World

    Global hunger declines, but rises in Africa and western Asia: UN report

    L&T Technology Services Wins ~$60 Million Software Engineering Engagement From US Tier-I Telecom Provider

    Roche provides regulatory update on Elevidys™ gene therapy for Duchenne muscular dystrophy in the EU

    Wipro Wins Multi-Year “Smart Grid” Deal from Saudi Electric Company

    Glion awarded prestigious Swiss Federal Accreditation

    Global childhood vaccination coverage holds steady, yet over 14 million infants remain unvaccinated – WHO, UNICEF

  • National
    • All
    • Economy & Politics
    • Election

    “World Tiger Day” celebrated.

    realme Launches 15 Series with Industry-First AI Edit Genie and Segment leading Performance

    ShareChat & Moj Announce Second Edition of ‘Short Form Big Impact Leadership Summit 2025’

    Prakash Varma to Inaugurate Creators & Marketers School in Calicut

    Himalaya Wellness Champions Bhringaraja in New Anti-Hair Fall Campaign with a Tale of Friendship

    L&T Technology Services Wins ~$60 Million Software Engineering Engagement From US Tier-I Telecom Provider

  • Business

    Thomas Cook India net profit stays flat at Rs 73.4 crore in April-June

    Nissan’s contribution to Renault Group’s second quarter 2025 earnings

    Punjab National Bank (PNB) announces First Quarter Financial Results for the Quarter Ended 30th June 2025

  • Health

    Apollo Bannerghatta Achieves 600+ Ultrafast Fully Automatic Robotic Knee Replacement Surgeries Under Dr. K.T. Rajashekar

    Government Strengthens Measures for Consumer Protection and Curb Unverified Claims by Ayush Product Manufacturers

    Roche provides regulatory update on Elevidys™ gene therapy for Duchenne muscular dystrophy in the EU

    “Every transplant at Kauvery is a commitment to giving life where hope is fading”-Dr. S Vijayabaskaran, Executive Director – Bangalore & Hosur.

    Global childhood vaccination coverage holds steady, yet over 14 million infants remain unvaccinated – WHO, UNICEF

    “The relaunch is our way of expressing gratitude to our early patrons and reintroducing the space with renewed energy.”-Mr. Arup Chatterjee Regional Manger South spokesperson from Barbeque Nation Hospitality Ltd.

  • Technology
    • All
    • Environment
    • Science

    Eveready Launches India’s 1st Ever Hybrid Torch with Sonakshi Sinha-starrer ‘Nikita Roy’

    Sony India launches WF-C710N earbuds with Dual Noise Cancelling and smart AI calling features

    HAL receives first set of wing assemblies for LCA Mk1A from L&T

    Emerson NI Days India 2025

    Industry leaders unveil innovative solutions for print, branding, signage and digital displays.

    “This University Is Not Just an Institution—It’s a Mini City of Engineers”: Union Minister Scindia

  • Auto

    ROLLS-ROYCE IN SAINT-TROPEZ: A SUMMER AT THE RIVIERA’S MOST DISTINGUISHED ADDRESSES

    Challenging half year – Audi realignment gains momentum

    Mahindra XUV 3XO ‘REVX’ LAUNCHED:

    Piaggio Vehicles brings in a new era of Apé Electrik; launches the all-new Apé E-City Ultra and the Apé E-City FX Maxx

  • Sports

    Four Seasons Hotel Singapore Serves Up a Luxury Sports Experience with Inaugural Summer Smash Padel and Pickleball Tournament Event

    Over 99% of Indian Children Want to Play Sports but 1 in 4 P.E. Classes Get Cancelled, Shows National Survey by Sportz Village

    Gulbarga Mystics to face Mangaluru Dragons in season opener of Shriram Capital Maharaja Trophy KSCA T20  

    ‘The corner defender is the pillar of the team:’ Yogesh Dahiya on his record-breaking Bulls move

  • Entertainment

    “Virgin Boys” – A Bold Telugu Youth Drama Captures Hearts Across Theatres

    A New Era in Luxury Weddings – Vogue Wedding Atelier Debuts in India

    GenS Life and Dowith Lit Present ‘Senior Spotlight’: Bengaluru’s Open Mic Celebration for the 55+

    PMJ Jewels Launches PMJ SuperStar Bracelet and ‘Celebrating Daughters’ Campaign

    ‘Waves’ an OTT platform that offers clean family-friendly content: Sunil Bhatiya, Deputy Director General, Doordarshan Kendra, Panaji

    Sri Sai Gold Palace’s 7th store inaugurated in Malleshwaram,Bengaluru.

  • Lifestyle
    • All
    • Food
    • Travel

    Apollo Bannerghatta Achieves 600+ Ultrafast Fully Automatic Robotic Knee Replacement Surgeries Under Dr. K.T. Rajashekar

    GKB Opticals Unveils Experiential Flagship Store in Bengaluru

    Arunachal Minister inaugurates IITM Travel Fair in Bengaluru

    Tata CLiQ’s Moments that CLiQ Sale across fashion, luxury and beauty is set to begin the celebrations for the festive season

    “Every transplant at Kauvery is a commitment to giving life where hope is fading”-Dr. S Vijayabaskaran, Executive Director – Bangalore & Hosur.

    Absolute Hotel Services Signs Second Landmark Property in Rajasthan — New Upscale Retreat in Ajmer Marks Strategic Cluster Expansion

No Result
View All Result
No Result
View All Result
Home Business

Real estate offers more appealing yields compared with yields on government bonds and equity markets: Colliers Research

by FWM
June 18, 2020
in Business
0

Gurugram, 18 June 2020 – Due to global demand recession, all the major economies are reducing interest rates to spur demand among the consumers. While interest rates have been falling in both developed and emerging APAC markets, interest rates are significantly higher in emerging markets. For example, the effective short-term rate in India as of Q2 2020 is about 5.5%, and even with CPI inflation of 3.9% the real short-term interest rate stands at 1.6% -a level which looks set to rise over the next few quarters. An important problem for emerging markets is that considerations of financial stability reduce scope for further interest rate cuts.

As per Colliers Research, the two key factors are driving the prices of APAC investment assets in general. The first is the recession caused by COVID-19. After a very sharp downturn, the recovery starting in China should spread gradually to the rest of the region. The second is record low policy interest rates –the result of a decade of loose monetary policy and recent emergency rate cuts. Real (i.e. inflation-adjusted) interest rates are very low or negative in developed APAC countries, though edging up in certain markets as inflation declines.

Against this backdrop, yields of 2.8%-5.8% for prime/Grade A office assets and of 3.5%-6.1% for logistics/ industrial assets in core APAC investment markets look appealing. In India, at an average cap rate of 8.5% on office assets, there is spread of over 3% compared to 10 year government bond, which makes the investment attractive in commercial core stabilised assets. This gap has only widened in past 3 months with consistent decrease on policy interest rates.

India’s commercial real estate competitiveness continues to remain strong with availability of quality assets at less than one dollar per month per sq. ft. and availability of low cost skilled labour and hence it’s decoupled of local economic issues to some extent. “There are limited core Grade A assets, and hence investor may find it opportune to invest at early stage, either equity or forward purchase and control the quality and specifications. Industrial/ warehousing is also similar trend with strong demand from institutional capital towards this asset class. The demand of cloud infrastructure is leading to various data centres and similar platforms coming in existence and this industry is taking a sizeable shape”, says Piyush Gupta, Managing Director, Capital Markets at Colliers International India.

ADVERTISEMENT

Residential in India has been suffering over past few years due to policy changes, liquidity stress, aggressive leveraging by developers and financiers. The opportunities for investors are available to acquire or fund against ready inventory and earn much higher returns. The risk return matrix in residential asset class is currently misplaced and any form of liquidity has a significant premium attached. The only meaningful liquidity is coming from SWAMIH Fund of Rs. 25,000 cr. With market consolidating, supply reducing and significant amount of stress, asset prices are currently low and over a long term investors will see an upside from the current levels.

Real estate offers more appealing yields

Compared to low or negative yields on government bonds and the possibility of falling dividend yields for equity markets, the yields offered by real estate assets in APAC markets look attractive. For example, yields in the office sector in developed APAC markets range between 2.8% for prime grade Hong Kong offices at the low end and 5.8% for Auckland at the high end¹. Yields on Grade A office assets in emerging markets are higher, ranging up to about 9.0% for Indian cities. While it may be true that rental income for office assets is under threat, the pressure is generally less than that on corporate profits in equity markets.

Tags: Colliers International IndiaColliers Research

FWM

Related Posts

Business

Thomas Cook India net profit stays flat at Rs 73.4 crore in April-June

by FWM
July 31, 2025
Business

Nissan’s contribution to Renault Group’s second quarter 2025 earnings

by FWM
July 30, 2025
Business

Punjab National Bank (PNB) announces First Quarter Financial Results for the Quarter Ended 30th June 2025

by FWM
July 30, 2025
Business

Blue Dart Announces Q1FY26 Financial Results with Sales Clocking in at Rs. 1,442 Crore

by FWM
July 30, 2025
Business

India’s CamCom Technologies Announces Strategic Partnership with ERGO Group AG

by FWM
July 30, 2025

Stay Connected

Thomas Cook India net profit stays flat at Rs 73.4 crore in April-June

July 31, 2025

Nissan’s contribution to Renault Group’s second quarter 2025 earnings

July 30, 2025

Punjab National Bank (PNB) announces First Quarter Financial Results for the Quarter Ended 30th June 2025

July 30, 2025

Recent News

Thomas Cook India net profit stays flat at Rs 73.4 crore in April-June

July 31, 2025

Nissan’s contribution to Renault Group’s second quarter 2025 earnings

July 30, 2025

Punjab National Bank (PNB) announces First Quarter Financial Results for the Quarter Ended 30th June 2025

July 30, 2025

Blue Dart Announces Q1FY26 Financial Results with Sales Clocking in at Rs. 1,442 Crore

July 30, 2025
ADVERTISEMENT

© 2018 | Fortune World Media | MEDIA & ENTERTAINMENT CO. IN | Powered by Raja's Digital

error: Content is protected !!
No Result
View All Result
  • Home
  • World
  • National
  • Business
  • Economy & Politics
  • Election
  • Health
  • Technology
  • Auto
  • Sports
  • Entertainment
  • Lifestyle

© 2018 | Fortune World Media | MEDIA & ENTERTAINMENT CO. IN | Powered by Raja's Digital

Exit mobile version