February 28, 2021

Chinese language apps ban might have marginal affect on industrial actual property: Consultants

Retaliatory sanctions by the Indian authorities towards China together with the ban on 59 Chinese language apps might have a marginal affect on the industrial actual property sector in Mumbai, Bengaluru and the Nationwide Capital Area, realty consultants mentioned.

A number of of those corporations like TikTok occupy premium workplace area in metro cities, and if the ban continues, they are going to begin vacating their places of work, say property brokers.

Moreover, TikTok and a few others have been actively in search of extra workplace area to increase their India operations, and people plans are actually on maintain.

“UC browser and TikTok are the 2 most important corporations who occupy giant workplace area in Delhi, Bangalore and Mumbai. At a time when there may be already a tenant exodus, additional exits by worldwide corporations might dent the industrial actual property sector,” mentioned a property marketing consultant, talking on the situation of anonymity.

One other property marketing consultant mentioned TikTok was actively in search of workplace area and had even scoured for properties in March.

“They have been in search of 1.5-2 lakh sq. ft however they are going to put the plan on maintain for certain. There isn’t any affirmation of any of those corporations vacating the area as of now but when the ban continues, it’s apparent that they are going to shut the workplace,” mentioned a Delhi-based marketing consultant.

The India-China standoff in Ladakh may also affect the choice of corporations in cell and vehicle sectors, as in addition they make investments closely in workplace area and manufacturing amenities.

“The present state of affairs can have some affect on leasing actions. We’ll know of the extent of affect with time,” mentioned Mudassir Zaidi, Knight Frank India’s govt director for north.

Smartphone corporations Vivo and Oppo have giant manufacturing amenities in Higher Noida in Uttar Pradesh, aside from places of work in Mumbai, Delhi and Bengaluru.

A Bengaluru-based market professional mentioned telecom tools firm Huawei was one of many largest tenants within the metropolis with 1 million sq. ft. Whereas, smartphone maker One Plus occupied 200,000 sq ft, rivals Xiaomi and ViVo too had leased workplace area within the metropolis.

App corporations are largely occupying co-working area, probably 700-800 seats. TikTok is in talks to hire area throughout Mumbai, Bangalore and Gurgaon. This deal has gone gradual and no massive leasing is being performed by Chinese language companies,” mentioned a Bengaluru-based market professional.

Chinese language companies account for lower than 1percentof the full leasing portfolio within the nation, specialists mentioned.

“UC browser occupies three flooring in Cyber Metropolis, which is the prime area within the NCR. It’s not nearly leasing but additionally the variety of individuals they make use of instantly or not directly. Moreover affect on industrial leasing, it’s going to additionally end in job losses,” mentioned an NCR-based marketing consultant.

On June 29, the Indian authorities banned 59 cell apps, citing safety considerations.