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Last Updated : | Source: Moneycontrol.com

COVID-19 India update | Industrial leasing in top eight cities at 11 million sq ft in H1 2020

At $195 billion, industrial is now the second largest investment asset class globally, JLL said

The novel coronavirus, or COVID-19, pandemic has had an impact on the country’s logistics sector, with the overall leasing or absorption in top eight cities in India standing at 11 million square feet in the first half of 2020 as against a 12-quarter average or 7.3 mn sq ft. There has also been an additional spike in short-term demand or temporary warehouses with the lease tenure of six to 11 months, a new report by JLL reveals.

Guwahati, Lucknow, Patna, Jaipur, Coimbatore, Rajpura, Indore, Vijayawada, Hosur and Kochi are expected to be the next industrial growth markets, JLL said in a report, titled: The Road Ahead – The Logistics Sector in Asia Pacific.

Occupiers are expected to further embrace technology, innovative solutions, modern processes and digital transformation to meet evolving consumer habits, it said.


“India logistics sector remain firmly on the radar of investors globally. Recent signs show the market becoming increasingly sophisticated. The inflow of capital into logistics has resulted in more complex transactions and greater participation by both established and new investors into the sector, which we expect to continue in the future as well,” said Ramesh Nair, CEO & Country Head (India), JLL.

COVID-19 Vaccine

Frequently Asked Questions

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How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

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Some key themes expected to gather momentum in the country going forward include:

Pursuit of platform deals: There is an increasing trend towards acquiring logistics platforms rather than individual assets in India including the recent Blackstone–AllCargo and Blackstone-Hiranandani transactions. Investors will increasingly pursue this route to gain captive tenant networks and achieve scale quickly in India.

Rapid institutionalisation: The world’s largest investors are investing more into logistics real estate. Blackstone’s acquisition of the GLP portfolio in the US during the third quarter of 2019 for $18.7 billion is the largest real estate deal in history.

Value upside: While growth in values is likely to slow in coming few years, investors’ confidence in the structural drivers for the logistics sector is expected to remain intact. Capital values are forecasted to stay relatively firm, with modest yield compression expected in some markets across the region.

E-commerce continues to drive a re-imagination of the Indian logistics sector. According to e-Marketer, online retail sales as a proportion of total retail sales stands at 14 percent globally in 2019. India has a huge growth opportunity with the e-commerce penetration rate standing at close to 5 percent, the report added.
First Published on Sep 17, 2020 05:49 pm