By Abhay Kumar, M.D. Reddvise
By Accommodation Times Bureau
“There is a tide in the affairs of men. Which, taken at the flood, leads on to fortune.’
The potential of commercial property in India’s near future is summed up aptly by these lines from Shakespeare. An investor’s view of commercial property in India should be pro-active and optimistic. We often hear people say, ‘I missed out there! That property was one-tenth in value five years ago.’ Now is the right time to invest in commercial property and reap the benefits five years later.
It is ironic that in the future the one single drag on India’s growth, its population, will become the means to economic stardom. China is regretting already the one child policy. It will soon lack a new generation of youngsters to fuel its economic growth. India’s large population is its big resource. It is a resource richer than oil. The coming generations will be the biggest buyers of Indian real estate and retail products. The present work force is already pushing the Indian economy into steady progress.
This is the time to ignore the skeptics. The evidence is already there in the growing projects in commercial property and infrastructure. India is moving ahead with a relentless though sometimes imperceptible speed akin to the revolving of the earth. You can only feel this speed once you look at the stars and the Sun. India’s economy is reaching for the sky.
The figures are there to prove it. Commercial property will be soon touching new heights at 45 million square feet. This figure is more than double that of a few years ago. The demand for retail space is one fourth of this phenomenon. Incomes are rising and spending will boost the retail business further. This is a lifestyle change. Suddenly the malls, the airports, the roads and cars are getting an international touch. The theme restaurants are blooming. Laptops, mobile phones, cosmetics are selling like hot cakes.
Further evidence, if required is available in the hospitality sector. We are getting an increasing number of business and leisure tourists than before. Conferences, seminars and meetings in the metro and technology cities are giving great business to hotels. In ten years the value of tourism in India will be more than 400 billion dollars. Last year alone the foreign direct investment (FDI) in commercial hubs, multiplexes and technology linked townships was more than a billion dollars. Big consulting firms like PricewaterhouseCoopers have given the thumbs up to India as a great investment destination for commercial and residential property.
India is the sleeping giant which is now beginning to wake up and is realizing that the future is bright. India has so many interlinked projects which are giving employment, investment opportunities and economic fillip. New Metro rail projects, Information Technology growth, modern farming, improving roads and rails together with a modern air and shipping transport system are all contributing to the prosperity of India.
Analysts forecast zooming industrial growth. The warehousing sector will also grow by leaps and bounds. A surprising winner on India’s story is that of healthcare especially medical tourism. India attracts a hundred thousand medical tourists each year. In the next five years more than a hundred modern hospitals will spring up to cater to this increasing demand. Education is another sector which is giving a boost to the economy. In a few years time the value of education related projects will touch the 70 billion dollar mark. The figures related to commercial space required by both these sectors are mind boggling.
Commercial property will continue to grow because investors and builders are now heading to Tier 2 and 3 cities. New industrial projects near these smaller cities will feed this growth. India is on a roll and the economy will snowball in size to the third largest in the world after the US and China.
On such a full sea are we now afloat And we must take the current when it serves—Shakespeare-(Julius Caesar)