Is the Indian SEZ story faltering?

By Jones Lang LaSalle, India

- Mumbai observed signs of improvement in office leasing activity. All the other cities witnessed a moderate to stable demand keeping rents and capital values almost stable. Bangalore appreciated marginally. .
 
- Chennai and Delhi saw increasing demand for retail space in May; demand remained subdued in Pune and Kolkata. Interestingly, rents and capital values remained stable across all cities
 
- Hyderabad and Bangalore witnessed marginal appreciation in capital values of residential properties. However, residential sales were off-beat in Mumbai and, other cities experienced moderate to stable sales.

Is the Indian SEZ story faltering?
The Indian government has recently done away with the minimum land requirement and has reduced (specified) minimum built-up areas for IT/ITeS SEZs. In addition, minimum alternate tax (MAT) and dividend distribution tax (DDT) have been imposed on SEZs.
 
Will these changes in the ground scenario take us away from creating mega-industrial cities and shift the focus towards smaller real estate developments?
 
In our latest edition of "Pulse" we have a brief insight on the background of Indian SEZs and the recent changes that have been imposed up on it. In addition we have a quick update on the major trends of Office, Retail and Residential real estate in May 2013.

 

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