Despite a dip in leasing activity for commercial and office spaces, developers remain optimistic, as corporates explore hybrid models of reoccupying offices
Much of the hunt for low-cost office space in India slowed during the pandemic
For several years now, India’s burgeoning commercial real estate landscape has been growing relentlessly, assisted by sub-dollar rental rates, an ever increasing talent pool, rapid digital transformation and expanding economic activity. Grade A office stock has grown more than 20 times to approximately 650 million square feet (msf) as of September 2020, from just 25 msf in 2000, according to Venture Intelligence and CBRE India data.
Commercial real estate growth in India continues to be dominated by large, new-generation technology parks, which have emerged over the past two decades across Bengaluru, Hyderabad, Mumbai, Delhi and Pune. Chandigarh and Kolkata are now attracting investments too. This, according to Nasscom, has been due to the emergence of over 8,100 digital solution providers, employing about 600,000 employees—approximately 75 percent of the global digital talent base.
“ There is a general consensus that corporates want to get their employees back to office as soon as it is safe.”
Michael Holland, CEO, Embassy REIT
In assets with lease-up risk, where an asset has been bought and is waiting for leasing activity, activity has slowed down.”
Tim Mooney, Partner, Varde Partners
(This story appears in the 02 July, 2021 issue of Forbes India. To visit our Archives, click here.)