Warehousing, data centers are the future of commercial real estate: Deepak Parekh

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Future demand for commercial real estate in India will come from warehousing, data and distribution centers with the increase in e-commerce and the need for new data centers, said Deepak Parekh, President of Housing Development Finance Corp Ltd ( HDFC), to investors at the company’s 44th annual general meeting. (AGA).

Demand for commercial real estate will support demand for housing which has strengthened due to the pandemic, Parekh said.

“Even in terms of commercial real estate, most companies have not given up on their offices. With the boom in e-commerce, demand for real estate comes from warehousing and fulfillment needs,” Parekh said.

With the establishment of digital infrastructure, the demand for data centers has increased, he said.

“There are segments of the real estate industry that have immense growth potential,” Parekh said.

He told investors that the Indian economy is on the road to recovery and will follow the same trajectory it experienced in the past fiscal year, with the second half being stronger than the first.

Parekh on Tuesday expressed confidence that the country’s macroeconomic fundamentals are solid and that the recovery is underway.

“I remain convinced that India’s macroeconomic fundamentals are strong. The recovery is underway,” Parekh told investors.

India’s foreign exchange reserves, strong foreign direct investment inflows, vibrant capital markets and strong agricultural growth, RBI support measures and government reforms all point to an economic recovery, Parekh said.

“The main lagging behind remains the overall credit growth which continues to remain lukewarm,” he said, while acknowledging that in terms of the overall macroeconomic environment, the main challenge remains the unpredictability of the coronavirus.

“The world is still susceptible to recurring waves of infections. Thus, the economic recovery will remain uneven and uneven,” Parekh said.


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