What Airbus' and Schaeffler's Shift in Strategy Means for CRE

Airbus expands production in India. So does Schaeffler.

What this tells us.

In yesterday’s issue of India Rising, I shared that the two European multinationals are doubling down on India:

▶️ Schaeffler inaugurated its fifth manufacturing plant
▶️ Airbus announced the location of its H125 helicopter assembly line, making India a strategic hub next to the US, Brazil and France.

This represents more than a strategic shift in their respective global location strategies. It confirms the growing importance of India as a future market, and is in line with cross-sectorial developments.

I see three key impacts on CRE portfolios:

1️⃣ India: Growing demand for commercial real estate to support both domestic market access and regional hub operations.

2️⃣ APAC: Potential consolidation or supply chain adjustments if India becomes a regional hub for a company

3️⃣ Global markets: A shift towards localised production strategies over purely globalised models.

As India approaches becoming the world's third-largest economy, I believe this trend will accelerate. With similar dynamics playing out in the region and other emerging markets.

I think the question is not if, but how fast this will happen.


Image source: Cristian Grecu via Unsplash

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