Latest news with #Colliers'
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Business Standard
5 days ago
- Business
- Business Standard
Indian outbound travel fuels hospitality sector in APAC locations: Colliers
India is rapidly emerging as a central force in the Asia Pacific hospitality sector, according to Colliers' latest report, Asia Pacific Hospitality Insights May 2025. The country is driving both resilient domestic growth and acting as a significant catalyst for outbound travel to key regional destinations. 'India is driving a structural shift in Asia Pacific's hospitality landscape, fuelling resilient domestic growth while emerging as a powerful outbound force,' said Nikhil Shah, managing director, Hospitality & Alternatives, Colliers India. He emphasised the strong demand across luxury, lifestyle and MICE segments, coupled with rising investor confidence in experience-led assets, making India central to regional tourism flows and sustaining premium pricing. While overall Asia Pacific hospitality investment volumes saw a 19 per cent dip in Q1 2025, India's unique position is reshaping the landscape and sustaining robust valuations. The report highlights that the steady momentum from 2024 has continued into 2025 for the Asia Pacific hospitality sector, shifting towards performance-led growth. But India stands out. A key development is the burgeoning Indian outbound travel market, which is increasingly fuelling the hospitality sector in destinations such as Thailand, Vietnam and South Korea. With growing disposable incomes and a strong appetite for experience-led travel, Indian tourists are becoming a dependable, year-round source of demand, contributing to strong room rates and marking a structural change in regional hospitality dynamics. Domestically, the outlook for the Indian hospitality sector remains robust, with Tier II cities poised to become significant contributors to future expansion. Spiritual tourism, in particular, is emerging as a crucial driver of inbound travel within India. Towns such as Ayodhya, Dwarka, Puri, Shirdi, Tirupati and Varanasi are set to unlock new investment avenues and fuel long-term growth, backed by focused government policy support and rapid infrastructure development. Despite limited liquidity in the broader investment market, robust valuations persist in India, driven by long-term conviction in the sector's future rather than solely cap rate-based transactions. Across the Asia Pacific, hotel performance remained resilient in Q1 2025, supporting ongoing deal activities. Revenue per Available Room (RevPAR) across the region saw a 2.1 per cent year-on-year increase — a significant improvement from the modest 0.4 per cent growth between 2023 and 2024 — primarily driven by Average Daily Room Rate (ADR) growth and higher occupancy rates. New Delhi and Mumbai were among the top performers in the region for ADR growth, alongside Phuket, Tokyo and Osaka, reflecting strong domestic demand, international travel surges and effective market positioning. Govinda Singh, Colliers' executive director, APAC Capital Markets, Hotels & Hospitality and Advisory, acknowledged the traditionally slow first quarter for transactions and the cautious 'wait-and-watch' approach due to geopolitical uncertainty. However, he anticipated a pickup in activity as the year progresses, with investors shifting towards value-add strategies focused on cash flow and income growth.
New Indian Express
6 days ago
- Business
- New Indian Express
Data centres to attract investments worth $20-25 billion in next 5-6 years: Report
BENGALURU: With an increase in adoption of Artificial Intelligence (AI) and Internet of Things (IoT) and the surge in demand for digital and cloud services, the country's data centre (DC) market has scaled up significantly, and will cross 4,500 MW by 2030 from the current capacity of 1,263 MW. Also, in the next five to six years, amidst massive adoption of cloud computation and AI in the country, data centres are likely to attract investments to the tune of $20-25 billion. The recent Colliers' report 'The digital backbone: Data centre growth prospects in India' states that Mumbai and Chennai cumulatively hold close to two-thirds of the DC capacity. Mumbai continued to account for the majority of the DC capacity with 41% share, followed by Chennai & Delhi NCR at 23% & 14%, respectively. This rapid expansion in capacity has resulted in an over three-fold increase in real estate footprint over the last 6-7 years, across the top seven DC markets of the country, taking it to 16 million sq ft as of April 2025, the report added. On the supply front, India has witnessed 859 MW of capacity addition across the top seven primary DC markets since the beginning of 2020. In terms of geographical spread, 44% of the new supply since 2020 was concentrated in Mumbai. This was followed by Chennai and Delhi NCR which together accounted for 42% of the capacity addition from 2020.
Business Times
06-05-2025
- Business
- Business Times
Johor-Singapore SEZ draws investor interest from developers eyeing residential and industrial sites
[SINGAPORE] Investors are currently focused on acquiring residential and industrial development sites in the Johor-Singapore Special Economic Zone (JS-SEZ), where opportunities for growth in the hospitality sector are expected to present themselves in the longer-term. Govinda Singh, Colliers' executive director for Asia-Pacific Capital Markets, hotels, hospitality and advisory, said: 'Johor is still in its infancy when it comes to core real estate. There's still a lot of runway to grow as its population grows and as industry develops. The sector is going to become more and more mature. 'There's a lot of land there. There aren't enough good-quality assets to invest in as yet, but that will change in time.' He was speaking to an audience of mostly investors and developers at an event organised by Maybank and the Real Estate Developers' Association of Singapore (Redas) on Tuesday (May 6). Singh said: 'There's a big supply overhang at the moment in the high-end residential market. In the market for those buying second homes in Johor, a lot of the properties are being rented out, and even then, there's not enough demand from visitors. If we want more people to live and work (in Johor), we have to make it affordable.' He was speaking in a panel discussion with Vinothan Tulisinathzan, minister counsellor of the Malaysian Investment Development Authority in Singapore (MIDA) and Chong Paul Wee, real estate director of corporate banking at Maybank. The panel was moderated by Yvonne Tan, UOL Group's chief corporate and development officer. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up In February, GuocoLand announced that it would partner Malaysia's UEM Sunrise to develop selected freehold land parcels in Iskandar Puteri, within the JS-SEZ. Responding to a question on the likelihood of success of the JS-SEZ, Chong said: 'The JS-SEZ is the strongest attempt by both governments in making it happen. It's not by invitation of one or the other, but really a joining of hands in making the arrangement formal.' Tulisinathzan described the JS-SEZ as 'inevitable', and would have immense economic benefits for Malaysia and Singapore. Both governments are enhancing the infrastructure needed to facilitate trade and investment between Johor and Singapore. The rollout of QR code clearance at immigration checkpoints in Malaysia is expected to reduce clearance time by up to 75 per cent, Tulisinathzan said. 'There has been substantial discussion on a ferry service from Puteri Harbour to Tuas.. There's also desire to have a (second) Rapid Transit System Link from Tuas to Iskandar.' There is strong demand for industrial and logistics assets as Johor seeks to develop its semiconductor and pharmaceutical sectors, Singh said. The SEZ may also present opportunities for Johor to build a Meetings, Incentives, Conferences, and Exhibitions (Mice) industry. 'Johor has ample space and can differentiate itself from Singapore by offering larger capacity venues, especially to more price-sensitive organisers. Singapore's largest Mice venue has a total of only 123,000 sq m of indoor space.' The number of overnight visitors to the State of Johor is expected to double from 4 million in 2024 to 8 million in 2030, as transport connectivity and entertainment options are enhanced. Investors can seize the opportunity to target the mid-market hotel segment, which will deliver good returns; they can also home in on the upscale, internationally branded segment, which can lift average room rates in the area and create a more vibrant economic environment, Singh said. Developers can also consider venturing into the Build-to-Rent segment in Johor Bahru and Iskandar Puteri, which are expected to attract talent from the manufacturing, digital economy and health sectors. Singh said: 'When people come to a new place, they would usually look to rent, given that they don't know the market well, or can't afford to buy in the first instance.'' The proposed JS-SEZ presents new opportunities for greater cross-border collaboration and investment between Singapore and Johor, a Redas spokesman said. 'While the initiative is still taking shape, there is growing interest in its potential for sectors such as real estate, trade, infrastructure and hospitality.'
Gulf Today
31-03-2025
- Business
- Gulf Today
India's real estate investment surges 88% YoY in APAC region
V. Nagarajan Real estate investments in the Asia Pacific market increased 12 per cent year-on-year to reach $155.9 billion in 2024, according to Colliers' new report – 'Asia Pacific Investment Insights H2 2024'. This growth underscores the continued resilience of the region's top nine markets – Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand and Taiwan. Within the APAC region, India continued to exhibit strong momentum with H2, 2024 witnessing 88 per cent annual rise in investments at $3.0 billion. Office assets continued to draw majority of the investments at 47 per cent share, followed by industrial & logistics at 27 per cent share. Mumbai attracted almost half of the investments during H2 2024, primarily led by acquisition of office assets, said the report. According to the report, South Korea, Japan, and Mainland China together accounted for 59 per cent of total $83.2 billion real estate investments in H2 2024. India, South Korea, Taiwan, and Australia, meanwhile saw significant investment growth, each recording more than 30 per cent year-on-year increases during the period. Office and industrial & logistics remained key segments in H2 2024, driving around 60 per cent of the total investments. Retail and hospitality segments too experienced a significant rebound, with retail investments increasing 31 per cent year-on-year to $15.0 billion during H2 2024. Both Australia and South Korea saw inflows exceeding $3.0 billion in the retail segment, reflecting renewed investor confidence in asset classes. 'Institutional investments in Indian real estate have shown remarkable growth, with 2024 witnessing a 22 per cent rise in capital inflows at $6.5 billion. This momentum is expected to continue in 2025, driven by favorable economic growth prospects and optimistic investment sentiments. Moreover, the anticipated continuity in easing of monetary policy including further reduction in repo rate, is expected to enhance liquidity and drive transactional activity across real estate segments in 2025. Diverse investment opportunities along with proactive government policies are likely to support robust capital deployment across core and non-core assets throughout 2025,' according to Badal Yagnik, Chief Executive Officer, Colliers India. 'Steady growth in investment volumes underscores India's prominence as a preferred real estate investment destination for both domestic and foreign capital. In H2 2024, foreign investments accounted for 57 per cent of total inflows, while domestic investments, at $1.3 Billion, saw a notable 8 per cent YoY growth. In addition to the USA, Canada and the EU, investment inflows from other countries in the APAC region will remain buoyant in 2025 and are likely to account for a significant portion of institutional investments in Indian real estate. Looking ahead, while global investors will continue to diversify their real estate portfolios, domestic investors are expected to make further inroads in segments with relatively higher yields such as office and industrial & warehousing,' according to Vimal Nadar, Senior Director & Head of Research, Colliers India. According to Chris Pilgrim, Colliers' Managing Director of Global Capital Markets, Asia Pacific, 'the resilience of the Asia Pacific real estate market is undeniable, with institutional investments rising and demonstrating strong growth last year, setting the stage for a robust 2025. 'The office segment will continue to witness strong momentum, underpinned by robust leasing and corporate expansions in key markets, and industrial & logistics and residential investments will remain significant, drawing from long-term stable structural demand. We expect retail, hospitality and alternative asset classes gain traction as the year progresses, as investors move to capitalize on recovery momentum and evolving consumer trends.' Overall, real estate investment volumes in the Asia Pacific region are likely to remain sturdy in 2025, amidst easing inflation, healthy economic growth prospects and declining borrowing costs across major markets. Q: I sold a property recently and got Rs20 million and wish to invest in two properties. Can I claim capital gains exemption? Ashita Aju, Sharjah. A: You can claim capital gains tax exemption as the 2019 amendment permits to claim exemption up to two residential properties if the capital gains do not exceed Rs 20 million. Yet another stipulation is that reinvestment should be done within two years or construction within three years, failing which it must be deposited in the capital gains account scheme. Q: I recently acquired foreign citizenship. As a resident in India earlier, I had invested in agricultural land and farmhouse in Delhi. Can I continue to hold these assets or is it admissible under the law to sell these properties? Please clarify. Kapil Patel, Dubai. A: Yes. You can continue to hold these assets acquired as a resident in India. Under the FEMA Act, 1999, a PIO who had acquired immovable property in India while he was a person resident in India may continue to hold such property. Under the general permission available, you may transfer by way of sale or gift agricultural land/farmhouse in India to a person resident in India who is a citizen of India or to an NRI/PIO. The sale proceeds may be credited to NRO account.
