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U.S. developer Panattoni states India must ease land acquisition process amidst warehousing boom

The head of U.S.based industrial realty developer Panattoni has actually advised India to simplify its land acquisition processes which he said make it tough for designers to cash in on a warehousing boom in the nation.

Foreign and domestic property designers are constructing more storage facilities in India to deal with growing storage demand of companies, however land acquisition is often a sticking point in a. country where several farmers or other people can own a piece. of land, and transfer processes are complicated and take time.

While India provides opportunities for growth, the most significant. challenge is land itself - consents (and) availability of. information to obtain land, said Robert Dobrzycki, CEO of Panattoni,. which owns large commercial real estate properties in the U.S.,. Canada and Europe and got in the Indian market in 2022.

We would like to do a growing number of. We would like to. make the most of the presence. But we are generally restricted by external. elements like land accessibility, Dobrzycki informed in an. interview on Friday.

Panattoni has plans to invest $100 million annually in India. over the next 2-3 years and is hopeful of signing 3-4 land. transactions in 2024. It has formerly said it took 8. months to total acquisition formalities for its first complex. near New Delhi where building will start in the coming. weeks.

India's facilities drive fuels high demand for land,. leaving couple of plots in excellent places, and surging costs hit. developers' returns as leasings fall back, executives say.

There has been a rush for leased contemporary warehouse area. which struck a two-year peak in the final quarter of 2023,. according to property firm Colliers, as India's financial. growth continues to overtake lots of innovative nations.

Panattoni has actually started a west-to-east expansion. starting with India and intends to likewise get in Japan, Australia. over the next 2 years, Dobrzycki added.

As well as Panattoni, a Blackstone Indian joint. venture and U.S.-based Prologis are likewise expanding in. India.

(source: Reuters)