Kaustav Roy, Executive Director - India, Cushman & Wakefield, has been a part of the Cushman & Wakefield since 1998. Kaustuv has a degree in Management in Finance from Narsee Monjee Institute of Management Studies, University of Mumbai, and a B.E. (Civil Engineering), from Bengal Engineering College, Shibpore, University of Calcutta. In the initial years he was the national manager for C&W’s Advisory Services where his responsibility included Research and Consulting assignments – assisting corporates in terms of location analyses, valuations and feasibilities. He headed the Tentant Strategies & Solutions division of C&W India before taking on the current responsibility. Kaustuv stepped into the real estate arena in 1996 as Senior Consultant at Colliers Jardine India. Prior to which he was employed with Tata Economic Consultancy Services as Business Research Executive and was independently responsible for conducting techno-economic feasibility studies across industries ranging from textile to industrial products.
Cushman & Wakefield is the world's largest privately-held commercial real estate services firm. Founded in 1917, it has 231 offices in 58 countries and more than 13,000 employees. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment management, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners; Consulting Services, including business and real estate consulting; and Valuation & Advisory Services, including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise in various industry sectors.
Speaking with Yash Ved of IIFL, Kaustav Roy says "In the next 3-4 years, we see more developments happening in the Navi Mumbai rather than south Mumbai".
How do you see the residential demand in the Mumbai market?
For the last 6-8 months, especially in Mumbai and Delhi, the prices have gone up considerably. There has been some renewed demand in the residential sector represented by fact that there are so many new launches that have come up especially in central Mumbai. We are still seeing some amount of resistance for under construction properties which are higher than Rs 25,000 / sq ft. In suburban markets like Mumbai and Gurgoan, the prices have strengthened; we could see a 20% jump.
The ready properties may see some 10% price increase and projects which are under construction, the rates may be steady.
How do you see commercial demand for Mumbai market?
There has been some amount of stabilization that has taken place in central Mumbai. Around 5-6mn sq ft of supply is expected over the next 24 months in central Mumbai. Ready supply has decreased at Bandra-Kurla Complex (BKC). In the last 26 months, the rates at BKC have gone up. In Asian countries, rates has bounced back very strongly. The London market too has started doing well.
How do you see rental rates in India and globally?
In US, we see revival in residential market. So, the linkages are very close to employment. I believe that unemployment rates have been steady. Europe is showing some negative sign. UK and Singapore housing markets are showing some positive move. In India barring the retail segment, most others have started to stabilize and in high demand micro markets increase in rental values are also being recorded. The Indian Real Estate market is coming out strongly from the economic slowdown.
What is your view on the redevelopment projects?
There are mill land redevelopments, slum redevelopments and mass housing redevelopment projects. The government is looking at some incentive policy by giving more FSI to developers. While we need to increase FSI, at the same time increasing FSI and not doing much on the infrastructure front will be disastrous.
What is your out look of the real estate sector?
I see the residential emerging stronger. The IT sector is expected to revive. We see positive move in commercial office space and corporate office. Some amount of consolidation will happen in the retail sector. Retailers are expanding very carefully and doing a re-jig with their strategy. There are more malls that are to be constructed; premium malls will do well.
What is your view on affordable housing?
Affordable housing has different meaning at different places. During the downturn, developers had reduced the prices for houses.
How do you see the price movement over the next few months?
Southern and suburban price increase is very fast. Thane district has lot of potential in a big way. As such as Tata Housing has gone beyond the immediate suburbs of Mumbai. Builders like Hiranandani are also constructing projects at Panvel and Rustomjee is developing a project at Virar. We see new developments happening at Virar, Vasai , Thane, Dombivali and Kalyan. In the next 3-4 years, we see more developments happening in the Navi Mumbai rather than south Mumbai.
Which are some of the expensive locations in and around Mumbai?
On an absolute basis, in Navi Mumbai, Palm Beach is an expensive location that is priced between Rs11,000-12,000 sq ft. For South Mumbai, Napean Sea Road commands a price between Rs50,000-75000 sq ft.
What is the scenario do you see for Dharavi project?
Dharavi project is a great initiative. Lot of developers are very keen for Dharavi project as there is huge potential in the project whether it is residential, or commercial. Some of the developers also pulled out this project.