News: India remains favourable commercial market investment destination in Asia-Pacific: Report-26-07-2019
Updated On : July 26, 2019,
H1 2019 recorded the highest ever, six months, office transactions of over 27 million square feet, according Sharad Agrawal, executive director- capital markets, Knight Frank India.
NEW DELHI: With 8.8% cap rate for commercial assets, India remains favourable market investment destination in Asia-Pacific, according to a recent report by Knight Frank India, a property consultancy firm.
“India’s office market offers some of the best returns for investors with over 8% yield, based on the fact that the underlined demand – supply dynamics are favourable for investors. This is demonstrated by the fact that 4 out of 8 office markets have single digit vacancy levels underscoring the strength of this segment. H1 2019 recorded the highest ever, six months, office transactions of over 27 million square feet.” said Sharad Agrawal, executive director- capital markets, Knight Frank India.
The Reserve Bank of India (RBI) has cut its benchmark interest rate by 75 bps in 2019. With the latest cut of 25 bps in June 2019, the RBI reduced the benchmark rates to 5.75%, citing the slowdown with its economy and inflation being in the lower end RBI’s target range. India’s GDP growth fell sharply to 6.6% in Q4 2018, surprising the market following the 7.1% and 8.2% GDP growth recorded in the previous two quarters.
With ongoing trade tensions and heightened economic uncertainties, many Asia-Pacific central banks have opted for a more dovish stance on their monetary policies. In the past six months alone, five Asia-Pacific central banks have cut their benchmark interest rates following weaker than expected economic readings.
