How has the GST impacted the RE sector?
#1 Leasing activity
Figure 1: I&L space take-up in the pre- and post-GST eras
The implementation of the GST as well as the advent of tech has boosted logistics demand, particularly that for quality space. Occupiers across segments are now opting for large, modern warehouses.
This is evident from the fact that annual space take-up in this segment has grown by more than 50% y-o-y in both 2017 and in 2018; stood at close to 25 million sq. ft. We expect this trend to continue, with annual leasing likely to touch 25-30 million sq. ft. by the end of 2019 and cross the 30 mn sq. ft. mark in 2020 and post 2020.
Occupiers are consolidating and expanding operations as well as moving into larger warehouses