For decades, Indian real estate has focused on frontline asset classes i.e. office, residential, retail and hospitality. However, now the attention is spreading across alternative asset classes as well.
These are specialized real estate developments like senior living, student housing, education, warehousing and health care. Various developers have started focusing on these specific segments in recent years.
Various new funds are also in at different stages of getting launched. The increased focus from developers and investors is transforming the space from unorganized to organized.
Recently we concluded one of the largest logistics deal in Asia Pacific between Indospace and CPPIB.
We believe this is the beginning of the new investment era where these alternative assets classes will start gaining attention and funding which will encourage more players to get serious about such ideas and help those to become part of the recognizable asset classes.
Increased focus on such assets by developers would attract more funds towards it which will in-turn motivate more developers to join in. These will help in improving quality of the properties which should attract foreign operators in various fields like education, healthcare, warehousing and likewise.
In next few years, if the things progress as per our expectations, we will see various foreign players entering in India.
Till date, we have seen Indian universities getting setup in foreign countries; now foreign universities might start getting setup in India providing benefits to the students in India.
Also, focus on student housing can provide good quality residence options for the students allowing them a much better life.
Shobhit Agarwal is MD & CEO – ANAROCK Capital.