Approx 14.94 Mn sq. ft. new office space was infused in Hyderabad in FY23 accounting for 31% total share among top 7 cities while Bengaluru saw new completion of 12.66 Mn sq. ft. with 26% share .NCR was close behind with 8.82 Mn sq. ft. office space infused; MMR saw just 4.18 Mn sq. ft. new office supply completed in FY23 – down 46% from the previous FY.
Coworking spaces are now also operating out of malls and hotels across cities. Many large office parks also house coworking spaces. This helps companies to remain closer to their employees and offer them flexibility
Coworking spaces have become the most preferred option to adopt the hybrid work model, compared to the other options of changing office layouts or the hub-and-spoke model
The BFSI sector is finally seeing the feasibility of looking beyond MMR. Cities with sub dollar (under USD 1/sq/ft.) office rents and enough relevant talent pools are now gaining momentum.
The total number of leases coming up for renewal in 2021 account for 90 Mn sq. ft. area. Interestingly, in terms of area, Bengaluru has the largest share at about 37%, with Mumbai coming in a distant second with a share of about 19%.
ANAROCK-Mace report titled ‘Navigating the India Data Centre Lifecycle – Trends & Perspectives’ reveals that India will see at least 28 large hyperscale data centres constructed over the next three years
US-based Binswanger Commercial Real Estate Services and ANAROCK Group have partnered to offer boutique advisory, brokerage and transaction services on industrial real estate opportunities between India, USA and other global markets.
In the West, investors have shown immense confidence in the self-storage sector due to its underlying attributes and resilience. Despite recessions and demographic shifts, private equity, institutions and private wealth of varying magnitudes continue to have an appetite for it.
Currently, the top 7 cities account for almost 70% of India's residential market, with the remaining 30% accounted for in Tier 2 & 3 cities. This ratio may well change in times to come. Cities like Lucknow, Indore, Chandigarh, Kochi, Coimbatore, Jaipur and Ahmedabad would be the main beneficiaries of the reverse migration of professionals who have lost their jobs in the metros or are likely to.
If the prolonged slowdown in the residential was not bad enough, to begin with,major policy overhauls over the last five years – DeMo, RERA, GST, amendments in the Benami Transactions Act etc. – literally paralysed the residential segment.
While any policy change brings with it some amount of teething pains, the residential segment took a prolonged hit because it had attracted the bulk of black money in the sector. Commercial real estate was far less affected, if at all.
Residential was also far less organized than the commercial office segment. Largely driven by IT/ITeS and BFSI sectors, the commercial real estate segment has been quite transparent and predictable – the primary criteria for foreign investors’ confidence.
