Forecast for the development of the commercial property rental market in India
The relevance of research
Commercial real estate is currently an important investment object, it is considered from the position of an object that is potentially capable of generating income, being competitive, and “working” with a return. Commercial property is property that is exclusively used for rental purposes and generates an appropriate rental income for the owner.
Purpose of the study
Analysis of the state of the commercial property rental market in India, assessment of the market size, analysis of competitors, as well as identification of factors affecting the commercial property rental market
Content
Chapter 1. Key components of the commercial property rental market
1.1. Market size
1.2. Growth rates of the commercial real estate rental market
1.3. Commercial real estate rental market trends
1.4. The main problems of the industry
1.5. Stage of the life cycle of the commercial real estate rental market
1.6. Estimation of the number of buyers and their financial capabilities
1.7. Estimated consumption per capita
1.8. Analysis of sectoral indicators of financial and economic activity
1.9. Price analysis
Chapter 2
2.1. Economic components
2.2. Social Components
2.3. Technological components
2.4. Political Components
2.5. STEP-analysis of the commercial real estate rental market
Chapter 3. Assessment of the degree of competition
3.1. Scale of competition (local, regional, national, global)
3.2. Number of competitors and relative market shares of the largest competitors
3.3. Compact location of industry companies in certain regions
Chapter 4 Industry Forecasts
4.1. Analysis of the impact of recent crises on the industry (the global crisis of 2008 and the currency crisis in India in 2014)
4.2. Analysis of the impact on the state aid industry at the current date
4.3. Assessment of the degree of impact of the crisis due to covid-19 on the analyzed market. Barriers existing in the commercial real estate rental market
4.4. Prospects and growth drivers for the commercial real estate rental market
4.5. Forecast for the development of the commercial property rental market in the context of the current economic crisis due to covid-19
Chapter 5 Forecasting Methodology
5.1. Methods for forecasting key industry indicators
5.2. Sources of information for forecasting
5.3. Timing of forecasting
Research excerpt
Chapter 1. Key components of the commercial property rental market
1.1. Market size
At the end of 2020, the volume of the commercial property rental market in India amounted to … billion rupees.
Commercial real estate is currently an important investment object, it is considered from the perspective of …
The following segments of the commercial real estate market are distinguished: ...
Commercial properties include…
There are several distinctive features of commercial real estate:
...
2020 has brought many challenges to the commercial real estate market. The effects of the pandemic and general uncertainty have motivated investors...
Based on the results of a difficult 2020, commercial property rental market operators changed their business practices in some way, and also revised …
1.2. Growth rates of the commercial real estate rental market
Market growth rates in the period 2016-2020 allow us to state that the commercial real estate rental market has entered ..., this is indicated annually ... The decline in 2019 and the rapid growth in 2020 are caused by ...
The analysis of the dynamics of the commercial real estate rental market was carried out on the basis of official data ... The volume of the Indian commercial real estate rental market during the study period has a … trend and an average annual increase of …%, except for … by …%. Presumably, the decrease in the market volume in … and its growth in 2020 are primarily associated with … deferred to the beginning of the year, as well as the average level of … At the same time, growth in 2020 is also due to an increase in revenue due to the provision of additional services to tenants in terms of provision ... In addition, the growth of the market volume in 2020 was influenced by factors such as stimulation ... Such market growth will be smoothed out ... The maximum value of the market volume was reached in 2020 and amounts to ... billion Rs., the minimum value for the study period was in 2016 with an indicator of … billion Rs. According to market experts, the main driver of growth in the commercial real estate rental market in India has been the …
1.3. Commercial real estate rental market trends
The main trends in the development of the commercial real estate market:
...
1.4. The main problems of the industry
...
1.5. Stage of the life cycle of the commercial real estate rental market
The commercial property rental market in India is currently in its infancy… which is the stage of…
Stage ... is characterized by a stable level ...
...
The level of competition in the market becomes ... At this stage, an average level is formed ...
...
1.6. Estimation of the number of buyers and their financial capabilities
Diagram 2. Population dynamics in India, as of 01 Jan. 2012–2021
Population. During 2019-2020 India's population shows … dynamics. A decrease in the population has ..., to a greater extent, the demand is affected by ..., which entails a decrease in ...
Rosstat predicts that the birth rate (the number of children per woman) will decrease from … to … by 2025.
Earlier, Rosstat published a demographic forecast until 2036. The most optimistic scenario assumes …
According to the results of the crisis year 2020, real disposable money incomes of Indians decreased by …% in annual terms, follows from ... From 2014 to 2017. real incomes of the population in India were declining, in 2018 they showed a small …%, and by the end of 2019 …%. At the end of 2020, they lag behind by …% from the level of 2013, the last year of steady income growth.
The Ministry of Economic Development expects that real disposable income will grow by …% in 2021, and then will grow by …%. A number of economists do not expect ...
1.7. Estimated consumption per capita
The volume of consumption of commercial real estate rental services per capita in India generally correlates with the dynamics of …, since the dynamics of the population over the study period, although ... The minimum value of consumption of rental services per capita … Rs./pers. falls on 2016, as well as the minimum value of the market volume. In 2017-2018 observed …, in 2019 the volume of consumption, as well as the volume of the market …% of the indicators of 2018, then in 2020 follows …
1.8. Analysis of sectoral indicators of financial and economic activity
Gross margin is an economic indicator that characterizes the ratio of gross profit to revenue and allows you to evaluate the efficiency of an industry or enterprise.
Gross margin of the commercial property rental industry in 2016-2020 quite ..., the deviation from the similar indicator for all sectors of the Indian economy during this period ..., the maximum value of the indicator is in ... years - ...%, which is by ... the indicator for all sectors of the Indian economy, which indicates ... In 2017-2018. indicator values …, the minimum value in …% falls on 2017, the reason for which was …
Diagram 5. Profitability of profit before tax (profit of the reporting period) in the commercial property rental industry in comparison with all sectors of the Indian economy, 2016–2020, %
Profitability before tax is an economic indicator that characterizes the ratio ...
Profitability before tax in the commercial property rental industry is quite … in 2016-2020, during this period this figure is … the same indicator for all sectors of the Indian economy, except for …
In 2020, the return on profit before tax is significantly …%, the minimum value of …% is observed in 2018, when the profitability before tax in the commercial real estate lease industry is …
The current (total) liquidity ratio is a financial ratio equal to the ratio ...
The value of the coefficient ... is considered normal; in world practice it is considered normal ...
Current liquidity ratio for the commercial real estate rental industry in 2016-2020 stable ..., which indicates that the enterprises of the industry as a whole ...
Absolute liquidity ratio is a financial ratio equal to the ratio of cash and ...
The financial position of the industry is recognized as good when the absolute liquidity ratio ...
Since the absolute liquidity of the commercial property rental industry … in 2020, while its value remains … the same indicator for all sectors of the Indian economy, the financial situation in the industry can be assessed as …
1.9. Price analysis
After the fall of the index in …, in 2017-2018. indicator …, and in 2019 …%. In general, for 2020 rental rates …, on the contrary, they showed …, this was due to the growth of …
The highest rental rates for warehouse and office real estate are in … Union Territories – … and … thousand Rs. respectively, and in … Union Territories – … thousand Rs./sq. m...
Chapter 2
2.1. Economic components
Gross domestic product (GDP) is one of the most important macroeconomic indicators.
It reflects the market value of all final goods and services intended for direct consumption, which were produced for ...
GDP is expressed in national currency, or (if necessary) converted into foreign currency at the exchange rate, and can also be presented at purchasing power parity.
The decline in the index of physical volume of GDP for 2020 was affected by the fall in global demand for energy resources and the introduction ...
Decreasing global demand for energy resources has affected the reduction of value added in the mining industry (…%).
Significantly reduced the value added of the service sector enterprises: ...
The continued demand for banking services, including the development of electronic services and a number of additional services, including investment accounts and preferential mortgages, led to an increase in …
...
The final consumption of the general government sector and non-profit institutions serving households increased compared to 2019 (…%) mainly due to an increase in public spending on healthcare and other activities related to the fight against the COVID-19 pandemic.
...
2.2. Social Components
...
2.3. Technological components
...
2.4. Political Components
...
2.5. STEP-analysis of the commercial real estate rental market
Table 5. STEP analysis of factors affecting the commercial real estate rental market
Based on the results of the analysis of factors influencing the Indian commercial real estate rental market, there is a prevailing ... influence of the main number of factors on the market, and, accordingly, on demand.
Significant limiting factors include…
The following political, social and technological factors have a stimulating effect on the analyzed market: ...
Chapter 3. Assessment of the degree of competition
3.1. Scale of competition (local, regional, national, global)
...
3.2. Number of competitors and relative market shares of the largest competitors
According to GidMarket analysts, more than ... organizations operate in the commercial real estate rental industry. The largest of them can be called eight organizations listed in table 6. All of these enterprises have the main activity of ...
Diagram 9. Shares of the largest competitors in the commercial real estate rental market in 2020, %
The leader of the Indian commercial real estate rental market is … with a share of …%, the second place with a share of …% is occupied by JSC “…”. On the third, fourth and fifth places with equal shares of …% JSC “…”, LLC “…” and LLC “…”, followed by …
To date, the Indian commercial real estate rental market operates ... while the largest enterprises have relatively ... market shares - in total ...% of the market. The rest …% of the market share among themselves …
GidMarket analysts suggest that in the coming years, the list of market leaders is most likely to …
The net revenue of the TOP-5 companies according to Rosstat in 2020 totaled … million Rs., the total revenue of these companies decreased compared to 2019 by …%. At the same time, the revenue of each company included in the TOP-5 decreased in 2020 compared to 2019, the rate of decline fluctuates …%, primarily this fact is due to the fact that market leaders rent …
In the period 2016-2019 The revenues of the TOP-5 companies showed a stable annual positive growth by an average of …%, which is associated with an increase in …, as well as with the introduction of new rental …
3.3. Compact location of industry companies in certain regions
To determine the compactness of the location of companies in the industry, consider the volume ...
Diagram 11. Compactness of location of companies in the industry in certain regions
The largest share of the proceeds from the rental of commercial real estate falls on … (…%), since it is there that the parent companies are concentrated ... In second place in terms of the share of the proceeds …, its share is …%. … occupies the third position and share ...%, the share of … region is …%. …
Based on the considered facts, it can be concluded that the operators of the commercial real estate rental market in India are compactly located in the bulk in ... - the total share of ...
Chapter 4 Industry Forecasts
4.1. Analysis of the impact of recent crises on the industry (the global crisis of 2008 and the currency crisis in India in 2014)
In 2020, many markets have felt the impact of the pandemic and the onset of the economic crisis, and the commercial property rental market is no exception.
Let us consider the impact of recent crises (the global crisis in 2008 and the currency crisis in India in 2014) on the industry and the commercial property rental market in India.
Table 7. Assessment of the impact of recent crises on the industry
4.2. Analysis of the impact on the state aid industry at the current date
Forecasting the development of the commercial property rental market in India is impossible without an understanding of the economic situation in the country, as well as the impact of the spread of the covid-19 virus and the measures taken to support the population and businesses of industries that have been particularly affected by the pandemic, …
...
4.3. Assessment of the degree of impact of the crisis due to covid-19 on the analyzed market. Barriers existing in the commercial real estate rental market
...
4.4. Prospects and growth drivers for the commercial real estate rental market
...
4.5. Forecast for the development of the commercial property rental market in the context of the current economic crisis due to covid-19
...
Chapter 5 Forecasting Methodology
5.1. Methods for forecasting key industry indicators
5.2. Sources of information for forecasting
...
5.3. Timing of forecasting
...
Diagrams
Diagram 1. Dynamics of the volume of the commercial real estate rental market, 2016–2020
Figure 1. Life cycle stage of the commercial property rental market in India
Diagram 2. Population dynamics in India, as of 01 Jan. 2012–2021
Chart 3. Dynamics of real income of the population of India, 2012-2020, available period 2021
Chart 4. Consumption in the commercial property rental market per capita, 2016–2020
Diagram 5. Profitability of profit before tax (profit of the reporting period) in the commercial property rental industry in comparison with all sectors of the Indian economy, 2016–2020, %
Diagram 6. Current liquidity (total coverage) in the commercial real estate rental industry for 2016–2020, times
Chart 7. India's GDP evolution, 2012-2020, available period 2021
Chart 8. Monthly dynamics of the US dollar against the rupee, 2016 - available period 2021, Rs. for 1 US dollar
Diagram 9. Shares of the largest competitors in the commercial real estate rental market in 2020, %
Diagram 10. Dynamics of the total revenue of the largest operators of the commercial property rental market (TOP-5) in India, 2016–2020
Diagram 11. Compactness of location of companies in the industry in certain regions
Diagram 12. Forecast of the volume of the commercial real estate rental market in 2021–2025
Tables
Table 1. Gross margin of the commercial property rental industry compared to all sectors of the Indian economy, 2016-2020, %
Table 2. Absolute liquidity of the commercial property rental industry compared to all sectors of the Indian economy, 2016-2020, times
Table 3. Consumer price indices in the commercial property rental market in India in 2016–2021 (available period), %
Table 4. Average prices in the commercial real estate rental market in the Union Territories
Table 5. STEP analysis of factors affecting the commercial real estate rental market
Table 6. Main companies participating in the commercial real estate rental market in 2020
Table 7. Assessment of the impact of recent crises on the industry
Table 8. Analysis of the impact on the industry of the state aid proposed to date
Table 9. Forecast indicators of the development of the Indian economy
All reports