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Business Times
13 hours ago
- Business
- Business Times
Reits, institutional investors and funds in ‘buy mode' as debt costs ease
[SINGAPORE] Real estate investment trusts (Reits), investors and funds have turned 'more acquisitive' in Singapore this year, even as geopolitical and macroeconomic uncertainties persist. Speaking on Thursday (Jul 24) at the annual property market seminar organised by the Real Estate Developers' Association of Singapore (Redas), CBRE deputy managing director of Singapore advisory and capital markets head Michael Tay noted an overall improvement in buying sentiment across the real estate investment market as interest rates eased. In the year to date, short-term interest rates in Singapore have fallen by 110 basis points, with the 10-year average now standing at 1.3 per cent. At a separate panel discussion during the Redas event, Taimur Baig, DBS chief economist, said: 'Singapore is going through a golden era in terms of capital flows. It is an overwhelming amount of portfolio and foreign direct investment that's coming to Singapore right now.' With almost a trillion dollars of foreign current deposit sitting in Singapore, Baig said: 'All that inflow, all the liquidity, materialised into collapsing the domestic interest rate.' Given the more accretive environment, Tay noted that 'investors are starting to see and feel that it is time to put money back into the Singapore market'. 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 Investors are also drawn to the Republic for its safe-haven status and steady yields, even though the market has seen limited repricing, unlike that of South Korea, China and Australia, said Tay. 'Despite tighter yields, Singapore has become a key component for most (institutional investors') portfolios as they balance risks across the portfolio.' Among Asia-Pacific investment markets, Singapore had the third-highest year-on-year growth in H1 2025, behind Japan and South Korea, said Tay. Investment activity in the city-state is up 7 per cent year on year, with private volumes up 20 per cent on the year. Notable deals include Fraser Centrepoint Trust's purchase of the rest of Northpoint City for around S$1.1 billion in March; IOI Properties' acquisition of a 50.1 per cent stake in the mixed-use project South Beach for S$834.2 million in June; and Mapletree Industrial Trust's divestment of three industrial assets for S$535.3 million to Brookfield Asset Management. In April, Bain Capital also acquired Blackstone's Singapore worker dormitory firm Avery Lodge for S$750 million. CBRE's Investors Intentions Survey in January found Reits, institutional investors and funds signalling more acquisitions in 2025. Net buying intentions from Reits measured at 22 per cent, up from minus 13 per cent in the prior year. That of institutional investors rose from 4 to 12 per cent, and property funds from minus 4 per cent to 10 per cent. Meanwhile, private investors were expected to divest more real estate assets, capitalising on improving market sentiment after acquiring them during a period of price dislocation. Developers were expected to be 'net neutral investors' in the year, with higher construction and labour costs weighing on development decisions, said the report. The industrial and office sectors were top preferred asset classes, with interest in office assets expected to pick up marginally this year due to stabilising or improving leasing activity in some markets. The living sector too, received strong interest with a few notable deals closing in the half year. BlackRock and Malaysia's YTL Corp acquired Citadines Raffles Place for S$280 million in May, and a BlackRock-led consortium bought Momentus Serviced Residences Novena for just over S$100 million in the same month. Earlier in February, an Indonesian tycoon acquired Oakwood Studios Singapore, a freehold serviced apartment block on Mount Elizabeth, for S$152.8 million. In alternative assets, investors are most keen on data centres, with interest also running high in student housing, CBRE's survey found. Despite the upswing in activity, Tay warned of growing concerns over trade wars and a potential recession in the next six months. In Singapore, investors are also worried that interest rate cuts may come slower than expected, he said. Nonetheless, Tay noted strong fundamentals in Singapore as the benchmark stock market index hit record highs. 'In most cycles, the performance of the equities market is a prelude to confidence and buying interest,' he explained. 'There is normally a price gap of anything from six to 12 months, so we feel positively that with the confidence in the equities market… and (what we see) coming through in the first half of this year, stronger interest will come back into Singapore's real estate market across asset classes.'
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Business Standard
a day ago
- Business
- Business Standard
GenZ, millennials shift towards co-living spaces; players plan expansions
As the market moves away from traditional paying guest (PG) accommodations, co-living operators in Bengaluru are witnessing a surge in demand from Gen Z and millennials, particularly in the age group of 21 to 27 years, seeking cheap flexible stays, enhanced safety and premium amenities. In the city, the trend has been further accelerated by closure of 200 to 300 PGs due to stricter Bruhat Bengaluru Mahanagara Palike (BBMP) regulations, coupled with layoffs in the IT sector, prompting entry-level professionals to opt for co-living. 'Co-living facilities offer a more structured, all-inclusive living experience with fully furnished ready-to-move-in spaces at affordable rentals. This offsets the relatively lower rentals offered by traditional PGs and has contributed to the growing preference for co-living facilities in Bengaluru,' Vimal Nadar, national director and head of research, Colliers India said. 'The closure of 200 to 300 PGs across Bengaluru due to legal and regulatory non-compliance has significantly boosted demand for our co-living offerings, and that momentum is only growing,' said Jitendra Jagadev, chief executive officer, Nestaway and HelloWorld, which offer co-living and student housing accommodations with value-added services, like housekeeping, maintenance, and fully furnished rooms. Nestaway and HelloWorld together have 1,000 beds, which they plan to double over the next two years. Co-living accommodations offer WiFi, housekeeping, dedicated coworking spaces, kitchen areas, laundry rooms, recreational areas, gaming zones, fitness areas, 24/7 security, and curated community events. The rents typically include access to shared amenities, utilities, housekeeping, and basic furnishings. In contrast, apartment rentals usually exclude utility and maintenance charges. As a result, the overall cost of accommodation in a given locality is generally lower for co-living facilities compared to similar apartment rentals. Additionally, flexible stay durations and minimal upfront costs make co-living an attractive option for many tenants. Most co-living operators are maintaining an average rate of 85–90 per cent. Rental prices at Colive, Trulive, Nestaway, and HelloWorld range from ₹10,000 to ₹35,000 per month, depending on the type of accommodation—whether private or shared. Rami Kaushal, managing director, Consulting & Valuation Services, India, Middle East & Africa, CBRE said, 'Co-living is also helping people avoid making a long-term financial commitment to a particular city, such as paying hefty security deposits for rent or EMIs for buying homes.' CBRE noted that some of the micro-markets in Bengaluru, such as Thanisandra, RT Nagar, Mahadevapura, Hoodi, and Banaswadi, have witnessed growing traction for co-living spaces. The average monthly rent for a double-occupancy room in co-living setups ranges from ₹12,000 to ₹14,500, whereas traditional PG accommodations in these areas typically range between ₹8,000 and ₹10,000. Bengaluru is home to several leading co-living operators in India, including Stanza Living, Zolo Stays, Colive, Hello World, Settl, Coho, Covie, Yello Living, and Olive Living. Markets like Mumbai, Pune and Hyderabad are also seeing a rise in co-living spaces, said experts. Suresh Rangarajan, founder and CEO of Sattva-backed Colive, however, noted that availability of quality co-living spaces remains a challenge in many other cities. Colive operates around 15,000 beds in Bengaluru and plans to add another 7,000 by the end of 2025. Rohit Reddy, co-founder and CEO of Chennai-based Truliv said that PG accommodation was not seeing enough traction, while co-living options were rising in numbers, more so in the post-pandemic period, giving customers the confidence to explore the organised and experience-driven stays. The company is looking to tap into Bengaluru's IT hub with 1,500 beds. Commenting on the demographic mix in Bengaluru's co-living spaces, Jagadev said, 'Around 40 per cent of our residents are entry-level professionals, 35 per cent are students, and the remaining 25 per cent comprise mid-level executives and digital nomads. We're seeing a growing share of remote workers, reflecting Bengaluru's rise as a hub for flexible work culture.' According to a May report by Colliers, the co-living segment is gaining strong traction across India, with inventory expected to reach one million beds by 2030. Market penetration is projected to rise from 5 per cent in 2025 to over 10 per cent by 2030. The sector could grow multifold, potentially reaching a market size of ₹20,000 crore by the end of the decade. Commenting on the market beyond Bengaluru, Nestaways and Helloworld's Jagadev further noted that he sees a similar trend in other parts of the country, like Mumbai, Pune and Hyderabad. However, Colive's Rangarajan said, 'We are observing a similar trend in Pune, but the availability of quality co-living spaces remains a challenge in many other cities.' CBRE further highlighted that India is witnessing a shift from traditional PGs to professionally-managed co-living spaces across major cities, driven by the young population and digital workforce, who seek more than just basic accommodation. Moreover, these spaces build a sense of community and networking opportunities.
Business Standard
a day ago
- Business
- Business Standard
Gen Z, millennials shift towards co-living spaces; players plan expansions
As the market moves away from traditional paying guest (PG) accommodations, co-living operators in Bengaluru are witnessing a surge in demand from Gen Z and millennials, particularly in the age group of 21 to 27 years, seeking cheap flexible stays, enhanced safety and premium amenities. In the city, the trend has been further accelerated by closure of 200 to 300 PGs due to stricter Bruhat Bengaluru Mahanagara Palike (BBMP) regulations, coupled with layoffs in the IT sector, prompting entry-level professionals to opt for co-living. 'Co-living facilities offer a more structured, all-inclusive living experience with fully furnished ready-to-move-in spaces at affordable rentals. This offsets the relatively lower rentals offered by traditional PGs and has contributed to the growing preference for co-living facilities in Bengaluru,' Vimal Nadar, national director and head of research, Colliers India said. 'The closure of 200 to 300 PGs across Bengaluru due to legal and regulatory non-compliance has significantly boosted demand for our co-living offerings, and that momentum is only growing,' said Jitendra Jagadev, chief executive officer, Nestaway and HelloWorld, which offer co-living and student housing accommodations with value-added services, like housekeeping, maintenance, and fully furnished rooms. Nestaway and HelloWorld together have 1,000 beds, which they plan to double over the next two years. Co-living accommodations offer WiFi, housekeeping, dedicated coworking spaces, kitchen areas, laundry rooms, recreational areas, gaming zones, fitness areas, 24/7 security, and curated community events. The rents typically include access to shared amenities, utilities, housekeeping, and basic furnishings. In contrast, apartment rentals usually exclude utility and maintenance charges. As a result, the overall cost of accommodation in a given locality is generally lower for co-living facilities compared to similar apartment rentals. Additionally, flexible stay durations and minimal upfront costs make co-living an attractive option for many tenants. Most co-living operators are maintaining an average rate of 85–90 per cent. Rental prices at Colive, Trulive, Nestaway, and HelloWorld range from ₹10,000 to ₹35,000 per month, depending on the type of accommodation—whether private or shared. Rami Kaushal, managing director, Consulting & Valuation Services, India, Middle East & Africa, CBRE said, 'Co-living is also helping people avoid making a long-term financial commitment to a particular city, such as paying hefty security deposits for rent or EMIs for buying homes.' CBRE noted that some of the micro-markets in Bengaluru, such as Thanisandra, RT Nagar, Mahadevapura, Hoodi, and Banaswadi, have witnessed growing traction for co-living spaces. The average monthly rent for a double-occupancy room in co-living setups ranges from ₹12,000 to ₹14,500, whereas traditional PG accommodations in these areas typically range between ₹8,000 and ₹10,000. Bengaluru is home to several leading co-living operators in India, including Stanza Living, Zolo Stays, Colive, Hello World, Settl, Coho, Covie, Yello Living, and Olive Living. Markets like Mumbai, Pune and Hyderabad are also seeing a rise in co-living spaces, said experts. Suresh Rangarajan, founder and CEO of Sattva-backed Colive, however, noted that availability of quality co-living spaces remains a challenge in many other cities. Colive operates around 15,000 beds in Bengaluru and plans to add another 7,000 by the end of 2025. Rohit Reddy, co-founder and CEO of Chennai-based Truliv said that PG accommodation was not seeing enough traction, while co-living options were rising in numbers, more so in the post-pandemic period, giving customers the confidence to explore the organised and experience-driven stays. The company is looking to tap into Bengaluru's IT hub with 1,500 beds. Commenting on the demographic mix in Bengaluru's co-living spaces, Jagadev said, 'Around 40 per cent of our residents are entry-level professionals, 35 per cent are students, and the remaining 25 per cent comprise mid-level executives and digital nomads. We're seeing a growing share of remote workers, reflecting Bengaluru's rise as a hub for flexible work culture.' According to a May report by Colliers, the co-living segment is gaining strong traction across India, with inventory expected to reach one million beds by 2030. Market penetration is projected to rise from 5 per cent in 2025 to over 10 per cent by 2030. The sector could grow multifold, potentially reaching a market size of ₹20,000 crore by the end of the decade. Commenting on the market beyond Bengaluru, Nestaways and Helloworld's Jagadev further noted that he sees a similar trend in other parts of the country, like Mumbai, Pune and Hyderabad. However, Colive's Rangarajan said, 'We are observing a similar trend in Pune, but the availability of quality co-living spaces remains a challenge in many other cities.' CBRE further highlighted that India is witnessing a shift from traditional PGs to professionally-managed co-living spaces across major cities, driven by the young population and digital workforce, who seek more than just basic accommodation. Moreover, these spaces build a sense of community and networking opportunities.
Zawya
2 days ago
- Business
- Zawya
Dubai sees 14% jump in Q2 2025 residential values
The cost of buying real estate in Dubai has significantly gone up on the back of strong investor interest and high influx of millionaires. Residential property values in the emirate went up by 14% during the second quarter of the year, as the economy continued to pick up, state reforms boost home ownership trends and high-net-worth individual (HNWI) population expanded, according to CBRE Middle East. Leading the growth in values are properties in premium neighbourhoods which continue to record significant increases. The first six months of the year demonstrated high buying activity within the residential real estate market, particularly in the off-plan segment, with overall transactions rising by 23% year-on-year. Sales during the period totalled AED 270 billion. The commercial real estate services and investment firm said that initiatives like Dubai's 'First-Time Home Buyer Program' have stimulated property demand and encouraged home ownership. 'The UAE is poised to attract a record number of millionaire migrants in 2025, fuelling demand, particularly in the luxury and off-plan sectors,' CBRE noted. The UAE's millionaire population has expanded in the last few years, as many HNWIs left wealth hotspots overseas. This year, more than 9,800 millionaires are expected to relocate to the UAE, according to Henley & Partners. (Writing by Cleofe Maceda; editing by Seban Scaria)
Yahoo
2 days ago
- Business
- Yahoo
Farsley's Gaunts Ltd appoints Paul Curson as managing director
A Farsley-based commercial property firm has appointed a new managing director. Gaunts Ltd, headquartered at Springfield Mills in the village, has welcomed Paul Curson to the role. Mr Curson, a chartered surveyor, brings more than 30 years of experience in property and asset management to the company. He said: "For the last two years, I have been working largely remotely, and dealing with assets in London and Manchester. "I was keen on this role, as I wanted to work locally and as part of a day-to-day team. "I have really missed the social interaction of being in an office. "I enjoyed meeting the other directors before accepting the role, and hearing of their plans, including their commitment to sustainability initiatives." Chris Pratt, former managing director and now non-executive board director, said: "I know Paul has the wealth of experience needed to consolidate Gaunts Ltd's success, and I look forward to seeing the expansion and growth of the business in the coming years under his leadership." Mr Curson spent 27 years at JLL, leading the property and asset team in Leeds, and most recently worked at CBRE. For more information about Gaunts Ltd, visit or call 0113 236 3555.
