Latest news with #Baijal
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India.com
5 days ago
- Business
- India.com
Another RBI Rate Cut To Spark Affordable Real Estate Momentum: Experts
New Delhi: As the Reserve Bank of India (RBI) prepares for its monetary policy committee (MPC) meeting this week, industry experts said on Tuesday that the transmission of rate cuts into lower borrowing costs is vital to sustain residential real estate demand — particularly in the affordable housing segment, which is sensitive to interest rate movements. Given the prevailing benign inflation environment and the GDP growth of 6.5 per cent recorded in FY2025, the Reserve Bank is likely to proceed with a 25-bps repo rate cut this Friday (June 6). 'The case for a rate cut is further supported by the revival in the liquidity conditions to a surplus of Rs 3.6 lakh crore, which enhances the effectiveness of monetary transmission. Additionally, the softening of G-sec yields reflects bond market confidence in the RBI's inflation and liquidity management and strengthens the rationale for easing rates,' said Shishir Baijal, Chairman and Managing Director, Knight Frank India. With the anticipated rate cut, the cumulative reduction in the policy rate in this cycle would be 75 bps. However, the focus must now shift to the pace and breadth of transmission. 'While some commercial banks have begun to lower their MCLR and base rates, the adjustments have been modest. With liquidity conditions stabilising, there is now greater scope for commercial banks to accelerate the pass-through of policy easing to borrowers. This will be key to spurring consumer demand and private investment, ultimately supporting economic growth,' Baijal noted. The Central Bank is projected to cut the repo rate by another 50 basis points (bps) this fiscal (FY26), after the 50 bps cut until April this year. Bank lending rates have begun easing, which should support domestic demand, according to a latest Crisil note. Experts said that with EMIs constituting a significant share of monthly income in affordable category, even a modest reduction in lending rates can influence buying decisions, providing the necessary momentum to support this price-sensitive demand segment.
Hans India
5 days ago
- Business
- Hans India
Another RBI rate cut to spark affordable real estate momentum: Experts
New Delhi: As the Reserve Bank of India (RBI) prepares for its monetary policy committee (MPC) meeting this week, industry experts said on Tuesday that the transmission of rate cuts into lower borrowing costs is vital to sustain residential real estate demand — particularly in the affordable housing segment, which is sensitive to interest rate movements. Given the prevailing benign inflation environment and the GDP growth of 6.5 per cent recorded in FY2025, the Reserve Bank is likely to proceed with a 25-bps repo rate cut this Friday (June 6). 'The case for a rate cut is further supported by the revival in the liquidity conditions to a surplus of Rs 3.6 lakh crore, which enhances the effectiveness of monetary transmission. Additionally, the softening of G-sec yields reflects bond market confidence in the RBI's inflation and liquidity management and strengthens the rationale for easing rates,' said Shishir Baijal, Chairman and Managing Director, Knight Frank India. With the anticipated rate cut, the cumulative reduction in the policy rate in this cycle would be 75 bps. However, the focus must now shift to the pace and breadth of transmission. 'While some commercial banks have begun to lower their MCLR and base rates, the adjustments have been modest. With liquidity conditions stabilising, there is now greater scope for commercial banks to accelerate the pass-through of policy easing to borrowers. This will be key to spurring consumer demand and private investment, ultimately supporting economic growth,' Baijal noted. The Central Bank is projected to cut the repo rate by another 50 basis points (bps) this fiscal (FY26), after the 50 bps cut until April this year. Bank lending rates have begun easing, which should support domestic demand, according to a latest Crisil note. Experts said that with EMIs constituting a significant share of monthly income in affordable category, even a modest reduction in lending rates can influence buying decisions, providing the necessary momentum to support this price-sensitive demand segment.
Hindustan Times
09-05-2025
- Business
- Hindustan Times
India's warehousing segment reports 16.7 million sq ft leasing in Q1 of 2025, Mumbai reports the highest leasing
India's warehousing leasing stood at 16.7 million sq ft across the top eight cities in Q1 of 2025. The leasing volume grew by 50% year over year, according to a report released by Knight Frank India, a real estate consultancy. This growth was primarily driven by the manufacturing sector, which recorded a remarkable 94% YoY surge in leasing volumes, reaching 8 million sq ft in the first quarter of the calendar year, the report said. According to the report, manufacturing companies accounted for 48% of total warehousing demand, underscoring the sector's continued momentum and long-term investment outlook. Mumbai reported the highest warehousing leasing Mumbai led with 27% of total transacted volumes at 4.4 million sq ft, followed by Pune at 2.9 million sq ft, Chennai at 2.9 million sq ft, and Delhi NCR at 2.7 million sq ft. Further, Bengaluru reported leasing of 1.4 million sq ft, Hyderabad 1.2 million sq ft, Ahmedabad 1 million sq ft, and Kolkata 0.7 million sq ft. According to the report, E-commerce players also registered a surge in leasing, with a 151% YoY increase. While Third-Party Logistics (3pl) players saw a 12% YoY increase in leasing volumes, but their overall share declined to 23%, reflecting a shift in sectoral dynamics. The warehousing market now reflects a broad-based recovery, with improving sentiment and growing confidence across diverse industry segments, the report said. The manufacturing sector was the primary driver in Pune and Chennai, while 3pl companies spurred market volumes in the Delhi NCR. The Chennai and Hyderabad markets saw the most volume growth, at 154% and 137% Yoy, respectively. 'The Indian warehousing market has demonstrated sustained momentum in Q1 2025, despite global supply chains being impacted by the new tariff environment. The China+1 strategy increasingly adopted by global businesses along with the government's focus on 'Make in India' continues to propel the country's manufacturing sector," said Shishir Baijal, Chairman and Managing Director, Knight Frank India. "The e-commerce sector is also showing promising signs of recovery, and its trajectory in 2025 will be a key trend to watch. As infrastructure and policy support continue to grow, India is poised to strengthen its position as a logistics and industrial powerhouse," Baijal said. Also Read: Coliving segment to add 1 million beds by 2030: Colliers report According to the report, demand for Grade A warehousing facilities remained firm in Q1 2025, accounting for 59% of all transactions. This preference underscores occupiers' growing emphasis on higher efficiency, ESG compliance, and automation readiness. Pune and Chennai have the highest concentration of Grade A stock, at 69% and 78%, respectively, due to their primary demand base of auto and auto ancillary occupiers. The report said tenants are clearly prioritising modern facilities that align with global logistics standards and offer scalability, safety, and technological integration. Also Read: Over 25,000 buildings in Mumbai Metropolitan Region eligible for redevelopment with ₹30,000 cr value: CREDAI-MCHI According to the report, the top eight warehousing markets in India have a warehousing stock of 495 million sq ft. Mumbai, the largest market, constituted 31% of the total stock, with the NCR being a distant second at 22%. Also Read: Amazon renews ₹1.73 crore monthly lease with Godrej Green Homes in Mumbai's Vikhroli The report said the vacancy level for Grade A properties was a healthy 11.5%, slightly higher than the 11.1% for Grade B properties due to the greater development interest.
