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Coworking Space

How Much Savings Can Be Achieved from Co-Working Offices?

India’s metros are home to thousands of startups, small businesses, and millennials who are seeking new work environments. In this scenario, co-working has come up as a popular business model that is redefining office spaces in the city. Co-working spaces are in great demand in cities like Bengaluru, Mumbai, and Hyderabad as they provide the necessary support, infrastructure, networking opportunities and office facilities to entrepreneurs who are just starting out. Continue reading “How Much Savings Can Be Achieved from Co-Working Offices?”

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Investment

Bengaluru, Mumbai and Delhi Ranked Among Top Investment Destinations in APAC

The government’s pro-reform policies for the Indian real estate sector has received a thumbs-up from foreign investors as three major cities have emerged as preferred investment destinations in the Asia Pacific region. According to the Emerging Trends in Real Estate Asia Pacific 2018 report jointly published by PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI), Mumbai, Bengaluru, and New Delhi were ranked 12, 15 and 20 respectively as top investment cities. Continue reading “Bengaluru, Mumbai and Delhi Ranked Among Top Investment Destinations in APAC”

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Commercial Real Estate

Builders Focus on Leasing Commercial Real Estate Over Selling

Real estate developers building commercial properties are shifting gears in light of recent policy developments. They are now focusing on leasing their commercial properties instead of selling them on an outright basis. With the likely launch of real estate investment trusts (REITs) next year, developers now have the option of monetizing their commercial assets through lease rental discounting (LRDs).

Lure of REITs

 
REITs pool capital from investors to purchase and manage income-yielding real estate assets or mortgage loans and can be traded on major stock exchanges like normal stocks. REITs are similar to mutual funds and allow a large number of small investors to invest in real estate. While investors get a chance to participate in commercial real estate’s growth, developers get much-needed liquidity through a new source of capital.
REITs also offer developers the option of better control and valuation over a period of time. Developers who would earlier opt for rental discounting are now building their own portfolio that can be listed under a REIT. On the other hand, builders keen on strata selling are now holding on to their commercial assets due to the prospect of a better yield of 7-8 percent with REITs.

Inflow of Investments


Indian real estate and the commercial real estate (CRE) market are attracting the attention of foreign investorsand domestic institutional investors who are infusing more funds into the sector. In fact, the total investment in the real estate sector crossed Rs. 16,000 crore in the first six months of 2017, the highest ever for the first half in any year. Major foreign investors backing India’s realty story include Canadian Pension Plan Investment Board (CPPIB), Caisse de Depot et Placement du Quebec, Brookfield Asset Management, Singapore’s sovereign wealth fund GIC and the Blackstone Group.

All eyes are on the launch of the first REIT slated for next year and its success is likely to decide the future of this market in India. Listing of CRE portfolios under the REITs would act like a booster shot for the sector providing liquidity option to investors in the future. Experts estimate that India’s real estate market will go from strength to strength with foreign investments increasing to $10 billion by 2020.

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Office Space

Bengaluru to Have Additional 26 Million Sq. Ft. of Office Space by 2020

Popularly regarded as India’s Silicon Valley, Bengaluru leads the pack of IT hubs in India. Pleasant climate, an international airport, and abundance of talent have turned Bengaluru into an international IT destination. It’s no wonder that Bengaluru has emerged as one of the largest contributors to commercial real estate in the country. According to experts, a whopping 26 million sq. ft. of office space will be added to the city by 2020. Continue reading “Bengaluru to Have Additional 26 Million Sq. Ft. of Office Space by 2020”

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Office Space

Office Leasing in Q3 Up in Major Indian Cities

India’s commercial real estate (CRE) market is growing by leaps and bounds and remained positive in the quarter ending September. The prime office space market continues to be buoyant due to increased investor activity, sustained leasing demand from technology companies and growing leasing interest from occupiers.
According to our market research, office space leasing grew marginally but significantly during Q3 in eight major cities and stood at 10.4 million sq. ft. Even as leasing activity remained upbeat, the office space absorption rose by 2 percent quarter-on-quarter. Continue reading “Office Leasing in Q3 Up in Major Indian Cities”

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Investment

13.6 Million Sq. Ft. of Retail Supply Coming Up in Top 8 Cities

India’s retail sector is heading towards a revolution with close to 34 new malls coming up in top eight cities by 2020. A whopping supply of 13.6 million sq. ft. is expected to come up in the next three years across the country. Experts are pegging the size of retail sector at Rs. 1 trillion by 2020 with an expected CAGR of 15 percent during 2016 – 2020. Continue reading “13.6 Million Sq. Ft. of Retail Supply Coming Up in Top 8 Cities”

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Office Space

Indian Cities Emerge as Most Affordable Office Hubs

India’s office market has come of age and has had an impressive run in 2016 and the first half of 2017. Home to some of the most affordable Central Business Districts in the world, Indian cities have outranked global business hubs. In a recent global survey, three Indian cities have been listed for highest yields for prime office space. Tech hub Bengaluru has secured the top position with the highest yield of 10 percent, followed by Gurugram at 9.2 percent and Mumbai at 8.5 percent. Continue reading “Indian Cities Emerge as Most Affordable Office Hubs”

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Coworking Space

Co-Working Spaces Attract PE Funds

Co-working has emerged up as a popular business model that is redefining office spaces across India. Such spaces are in great demand in metros as they provide the necessary support, infrastructure, networking opportunities and office facilities to entrepreneurs who are just starting out. Continue reading “Co-Working Spaces Attract PE Funds”

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Commercial Real Estate

Top 5 Expensive Retail Micro-Markets in India

The retail real estate market in India is as vibrant as ever with popular micro markets commanding high rentals and receiving high footfalls. The majority of expensive micro-markets are located in Delhi-NCR and Mumbai and continue to witness strong demand from retailers. Here’s a snapshot of the top five expensive retail micro markets in the country:
Continue reading “Top 5 Expensive Retail Micro-Markets in India”

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Office Space

Pre-Commitment for Commercial Space Shows Sharp Rise in India

As CRE activity picks up pace across major commercial hubs in India, pre-commitment levels in key office markets have been on the rise indicating persistent demand and occupiers’ interest in commercial spaces. In a pre-commitment deal, a developer leases the office building to corporate occupiers even as the building is under construction. In the current scenario of shortage of quality commercial space supply and increasing pressure on rents, many companies are pre-committing space for future needs and portfolio optimization.
Continue reading “Pre-Commitment for Commercial Space Shows Sharp Rise in India”

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