Tag Archives: Colliers International India

What makes Bangalore attractive business destination?

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Bottom Line: Bangalore has the highest office space consumption per household that indicates its high demand as attractive business destination. 

Bangalore City, Bangalore real estate market, India real estate news, Indian property market, NRI investment in Bangalore, Housing demand in silicon valley, Track2RealtyOne of the fundamental reasons why Bangalore has been the prime demand driver of residential real estate is that the city has a thriving economic activity. It is, as a matter of fact, the leading city in terms of the absorption of office space and that is fuelling the demand for the housing. However, it would be necessary to understand the dynamics of business & economy of the city to understand what makes Bangalore such an attractive business destination.

An analysis by Track2Realty vis-à-vis the volume of office space consumption per household – not only in India but also internationally in London, Singapore, New York, Tokyo etc concludes that there is equilibrium when the office space consumption is around 60-65 sq feet per household. In India it is rather surprising that the ratio per household even in a city like Mumbai is 25 sq feet. Kolkata has a dismal only 14-15 sq feet office space per household. In Delhi-NCR it is again 20-25 sq feet per household.

Bangalore is the only face-saver in India where the absorption is 50 sq feet office space per household which means the volume of office space and houses being supplied have been in equilibrium. That is the reason why Bangalore is a realistic market.

In London despite of so much population pressure it still has 50-55 sq feet per household. Singapore has 60-65 sq feet per household; New York has 160 sq feet per household. Now since Bangalore maintains that equilibrium it is so attractive to the end users. Investors won’t be attracted unless they are very long-term player. 

A JLLI report also points to the fact that Bangalore has helped India debut on the ‘City Momentum Index’ (CMI) Top 20 list this year– an annual survey carried out by Jones Lang LaSalle globally. Reinforcing the city’s status of being one of India’s premier technology centres, Bangalore figures at No. 12 in the Top 20 technology-rich cities globally. The economic as well as real estate momentum has gained pace as tech-industry majors line up to enter the market, or expand, here.

This also raises a question as to whether Bangalore is slowly shaping up as the next financial nerve centre. Ashish Puravankara, Managing Director, Puravankara Projects believes the companies are also realising the cost of doing business in Bangalore. The average rental cost of office space per sq feet in Bangalore is about 45 rupees and that works well for the companies. Then from the customers’ point of view, the average cost of housing in Bangalore is 5,500 rupees and that works well for their workforce. So, it is all supporting each other and it is not that one factor alone is driving the market.

“If the prices have become unaffordable due to high demand in the city, people would have started looking at Chennai. I am not sure about the question of whether Bangalore will be the next financial capital but this city has tremendous economic activity. The reason why companies are setting up offices here is cosmopolitan culture, great weather and access to educated workforce. So, all this is adding on to the employment and that employment is creating the housing demand. I know very many people who have moved from Delhi or Mumbai for work; they have no connection or roots here,” says Purvankara. 

With the share of per household office space consumption being highest in Bangalore, the question is whether the developers in the city have been beneficiary of this by default or they have been part of making the eco system conducive. 

Joe Verghese, Managing Director, Colliers International thinks it all came together and the developers have been lucky also and have also played very valuable role.

“I don’t want to undermine the value of their trust quotient. It is a fact that investor today trusts these guys more than any other developer in any other part of the country. The reason why they trust is that these guys have been more professional to keep their word. I don’t see too many disputes between the developer and investor or between the fellow developers in Bangalore market,” says Verghese.

It can be conveniently vouchsafed that even beyond the issue of cost of doing business and the ease of doing business, Bangalore has the potential to attract the business houses better than many other cities. One reason is weather and the other is safety.

For example, four large companies in Gurgaon are today planning to shift to Bangalore post the earthquake tremors in Delhi-NCR. They are large MNCs with 3-4 million sq foot facility in Gurgaon. The kind of list of compliances that they have, including safety, they have started working on moving to Bangalore.

Thus, while office market is a true indicator of the resilience of Bangalore real estate, there are several underlying factors supporting that. Collectively, they make Bangalore shape up as arguably the best business destination in the country.

Harleen Oberoi joins Colliers International

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News Point: Colliers International India has appointed Harleen Oberoi as the Senior Executive Director, Project Management, India & Developer Projects Leader, South Asia.

Harleen Oberoi, IPC, International property consultants, Independent property consultants, Colliers International India,  Professionals in property market, Professionalism in real estate, India real estate news, Indian realty news, Real estate news India, Indian property market news, Track2RealtyHarleen has over 28 years of experience in projects, and the construction industry in India and overseas. Harleen joins Colliers International from Brookfield Global Integrated Solutions, where he held the position of Executive Director & Country Head, however a major part of his experience has been with Cushman & Wakefield (C&W), as the Managing Director, Project Management for India.

Colliers International has built a robust project management delivery platform in India over the past decade. Simultaneously, the organisation has been adding capability to its already existing strong talent pool, to leverage this platform and maximize output.

As Colliers International gears up to strengthen its market position across the Occupier and Developer services platform, to capture a higher market share, Harleen’s presence in the team and his vast experience adds to the capability to not just service leading clients in the business, but also to position Colliers International amongst the top 3 International Property Consulting (IPC) firms by 2020. 

“The India team is pleased to welcome Harleen Oberoi to executive leadership team. After his past stints in various leadership positions in our industry, he is today best placed and positioned to leverage the strengths of our already established platform and take it to the next level of service delivery and accelerated growth”, said Joe Verghese, Managing Director, Colliers International India.

Harleen Oberoi added, “Colliers International is the only IPC that has demonstrated and conveyed its intent by investing in technology and resources in India and the region in recent times, envisioning therefore, a complete market dominance by 2020. I am convinced that there can be no better time to come on board and be a part of Colliers International, and contribute towards the assured success story”.

Colliers International advisors to Skylark Mansions to raise INR105 Crores from Xander Finance

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News Point: Colliers International was appointed as the sole advisor by Skylark for this transaction. Project funding to be used in Skylark Dasos project in Bengaluru. 

Track2Realty, Track2Media, India Real Estate, Valuations of Real Estate, Realty News, Property News,Colliers International India’s Capital Markets & Investment Services (CMIS) team in Bengaluru facilitated a successful completion of transaction between Skylark Mansions and Xander Finance.

Colliers International was brought on board as the solution provider to raise INR105 crores in structured debt from an NBFC- Xander Finance Pvt Ltd, mainly to give an exit to the current investor- Motilal Oswal Real Estate in project Skylark Dasos on Hennur road.

A part of the money will also be spent on the project development. This is a project which has around 8 lakh sq ft of saleable residential space and is coming up in one the fastest growing areas of Bengaluru. 

Skylark Mansions is one of the leading real estate development companies in South India and has been creating iconic developments for over two decades in Bengaluru. The Group has recently expanded to Chennai and has about 9 projects under construction.

They sell homes at a starting price of INR 30 lakh and up to INR 6 crore. The realty firm has refinanced the existing lender – Motilal Oswal with lower-cost capital from Xander Finance and is looking to launch the project shortly. Motilal Oswal had invested through structured debt route in 2015 in the project. The newly raised capital will aid Skylark in faster approvals and timely construction of the project. 

“We are pleased to be working closely with Xander Finance and Skylark Mansions. This transaction was possible due to commitment from both Skylark Mansions and Xander Finance to build a relationship. Once onboarded, the Colliers CMIS team advised Skylark on deal marketing, structuring and facilitated the due diligence and execution process, leading to a successful transaction closure”, said Garima Bansal, General Manager, CMIS (Bangalore), Colliers International India.

H1 2017 witnesses a 17% decline in the number of new launches: Colliers Research

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News Point: Affordable housing to grasp major share in new launches in H2 2017: Colliers Research 

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India PropertyAlthough the market had returned to normal after the demonetisation drive in November 2016, it was further impacted by the implementation of the Real Estate (Regulation and Development) Act (RERA) and then the nationwide execution of the Goods & Services Tax (GST). 

As per Colliers Research, RERA and GST compliance will remain a challenge for several developers for at least the next six months. We expect a decline in the number of launches in H2 2017. However, the sales are likely to pick up during the festive season due to higher optimism among buyers after RERA.

This will further address the issue of unsold inventory in the market. As per Colliers, buyers who are looking to invest in the next three to four months should opt for RERA-registered and ready-for- possession projects. 

The residential market witnessed a 17% decline in the number of new launches since H2 2016 with 40,600 new units introduced in the first half of 2017 in prime cities. Mumbai and Bengaluru were at the forefront with 35% and 33% of total launches respectively, while Chennai, Pune and NCR accounted for the remaining 13%, 10% and 9% share.

The luxury market has been affected the most, and the number of launches reduced considerably in this segment. Colliers forecasts similar sentiments to prevail in the next six months, with affordable housing grasping a major share in new launches.

“Supply of new projects will remain restricted in the market in short to medium term but this will help to mitigate the oversupply situation in most markets. After the recent bank rate cut by RBI in July 2017, we do not expect any further rate cut in H2 2017. Also, the prices have been stabilised in most markets, and any further reduction is unlikely. Thus, buyers should expedite their buying decisions and take advantage of lower interest rate regime. The first-time homebuyers can also get benefit from the incentives under Pradhan Mantri Awas Yojna (PMAY)”, said Surabhi Arora, Senior Associate Director, Research, Colliers International India.


Against the backdrop of the demonetisation drive and the announcement of RERA implementation, market sentiment was suppressed and impacted the new project launches significantly during H2 2016. For Mumbai, H1 2017 was marked by the finalisation of the RERA’s norms and the website launch for registration of projects. Although developers were expecting it, the transition towards a RERA-compliant regime has been difficult for many. 

In H1 2017, we noticed a slight improvement in supply to 14,000 new launches (including 3,800 pre-launches) in the Mumbai Metropolitan Region (MMR) and its suburbs representing a 16% increase over H2 2016.

About 58% of the new launches were in the mid-end segment, whereas luxury and high end properties represented only 17% and 25% share in the total new launches.


Strong office sector performance indicates a healthy demand scenario for the residential sector in medium to long term. Colliers forecasts the mid-range segment would continue to drive sales as the festive season approaches in September and October and developers offer various promotions and attractive payment plans amidst a soft home loan interest rates environment.

With about 13,400 of new unit launches in H1 2017 the city ranks second in total residential launches in India, next to Mumbai, though the residential market in Bengaluru faced a notable drop of 23% compared to H1 2016. Localities such as Yelahanka, Devanahalli, Ranchenahalli and Kogilu recorded the highest number of launches in the city. Most of the new launches were in the mid-segment category catering to the higher demand from information technology employees of the city.

Private equity investment was sustained with notable investments by KKR India Asset Finance Management, Edelweiss Group and the HDFC Realty Fund.


After the instability in the market at the beginning of 2017, the residential sector is now recuperating. With the notification of Tamil Nadu RERA, Colliers would advise developers to obtain all necessary approvals on time, pay attention to project planning, use modern construction technologies to speed up the development process and manage project funds efficiently to avoid delays and align for a smoothertransition towards RERA compliance.

Chennai’s residential market witnessed the launch of nearly 5,300 residential units, representing a rise of 19% from H2 2016. Of the total launches, 33% were concentrated in peripheral locations of the city’s south quadrant along Old Mahabalipuram Road (OMR), Grand Southern Trunk (GST) and East Coast Road (ECR). Reputed developers in the mid-market category accounted for about 70% of the total launches.


In H1 2017, the Pune market witnessed about 4,034 new residential unit launches mostly in the mid-range segment. Although the government has granted infrastructure status and incentives to affordable housing, we have not observed much expansion in this sector from Pune developers. Developers are still exploring the feasibility of such projects in Pune. The average capital value of mid-range segment projects is already in an affordable range of INR4,000 – 5,000 per sq ft (USD 62 -77 per sq ft).

NCR-  3900 units were launched in NCR in H1 2017.


In line with an earlier forecast by Colliers, the new launches in Gurgaon fell to an all-time low of only 3000 new units in H1 2017. About 90% of the total unit launches were in the affordable category under the government initiative of Pradhan Mantri Awas Yojna which was specifically designed for the affordable housing segment. Majority of the units launched in H1 2017 were in the price band of INR2-2.5 million (USD31,000-38,800) that caters to the affordable segment in Gurgaon.

As per Colliers, registration under RERA should start in Q3 2017 and it is likely to take at least six months for developers to become accustomed to the new regulation. Thus, Colliers expects new launches to remain subdued in H2 2017, but sales are expected to revive during the festive season primarily in ready-to-move-in projects as most developers would provide discounts and attractive payment plan options. 


The completion of projects and the end-user interest in the ready to move in projects kept the market alive in H1 2017. Most of this demand was concentrated in newly developing sectors such as 72 to 78, sector 100, 107, 137 and Greater Noida West. Developers refrained from launching new projects in H1 2017 and focused on completion of existing projects. About 3,000 units got completion certificates in the last six months, while new launches hit bottom at under 1,000.

Cushman & Wakefield appoints Swapan Dutta as Managing Director Kolkata

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News Point: Cushman & Wakefield has appointed Swapan Dutta as the Managing Director Kolkata operations.

Swapan Dutta, Colliers International India, Cushman & Wakefield, Real estate professionals in India, India real estate news, Indian property market, Real estate news India, Track2Realty, Track2Media Research Swapan will be responsible for developing new avenues of growth in Eastern Region and will work closely with clients to provide innovative and value driven transaction solutions that are in line with their strategic goals. Swapan will be reporting to Anshul Jain, Managing Director, India, Cushman & Wakefield.

Kolkata as a market is at an advantageous position for future growth. With a good human resource base coupled with government announcements like the creation of the Financial Hub in Rajarhat and proposal for setting up of Industrial Parks in PPP mode, improving infrastructure and a legacy of being an economic centre, various industries have begun to show a keen interest in the market.

With its depth of services to clients across the region including the states of Odisha, Assam and Bihar and also overseas destination of Bangladesh, Cushman & Wakefield is well poised to provide real estate solutions to companies actively looking at expanding their operations in these regions.

“Having a presence in the Eastern region for over a decade, we at Cushman & Wakefield completely understand the huge potential of the market and is committed to investing herein. Swapan’s industry and regional knowledge would help us in identifying and developing new streams for long term revenue growth and maintaining our relationships with clients, thereby strengthening our operations and services in Eastern region. Anshul Jain, Managing Director, India, Cushman & Wakefield.

“Cushman & Wakefield is a reputed brand known for putting the clients’ interest as foremost priority. I look forward to working with a group of very talented and dedicated professionals to further fuel the growth of Kolkata business,” says Swapan Dutta, Managing Director, Kolkata.

Swapan joins Cushman & Wakefield with over 23 years of experience in business planning, business development, project management, sales & marketing across various industry segments. In his earlier roles he has conceptualized, formulated and supervised complete profit center operations to achieve business goals, operating profits and cost efficiencies.. Prior to joining Cushman & Wakefield, Swapan was the Director, East with Colliers International.

Sanjay Chatrath joins Colliers International as the Executive Director, NCR operations

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News Point: Colliers International India has appointed Sanjay Chatrath as the Executive Director – NCR. 

Sanjay Chatrath, Cushman & Wakefield, Colliers International India, India real estate news, Real estate news India, Indian property market, Professionals in Indian real estate, Track2Media Research, Track2RealtyAn industry veteran, Sanjay has over 16 years of real estate experience and joins Colliers International from Cushman & Wakefield (C&W), where he held diverse leadership positions providing strong contribution in driving strategic growth for the firm.

With over a decade in C&W, Sanjay has led numerous large transactions and has serviced clients across FMCG, BFSI, Government Organizations, Consulting Firms, IT/ITES, Telecom and Power/Energy sectors.

“Colliers International has built a robust delivery platform in India over the past decade. Simultaneously, we have been adding capability to our existing talent pool to leverage this platform and maximize output. This accelerated increase in capacity requires focused local leadership in all markets. Sanjay’s addition to our team provides exactly this leadership to our NCR operations. He not only brings with him deep & rich transactions experience, but also capability to provide direction to our occupier services, as a whole. I am very happy to have Sanjay on the team. These are very exciting times to be working at Colliers International”, said Saacketh Chawla, Deputy Managing Director, Colliers International India.

Sanjay Chatrath added, “I am thrilled to be part of the Colliers International team. My entire career has been spent in the real estate industry and I look forward to continuing that tradition by providing “best in class” real estate solutions to Colliers’ current and future clients. In my current role, I will be directing and overseeing the overall operations of Colliers International in North, with emphasis on providing superior services to clients and driving growth in North India”.