Delhi-NCR has until now witnessed a similar trend, Bangalore and Hyderabad are fast catching up on this trend as well The study also indicates that tenants are moving from traditional Central Business Districts (CBDs) like Connaught Place in Delhi and Nariman Point in Mumbai to emerging alternate new business districts in Gurgaon and Bandra Kurla Complex, respectively. As a result, with rising vacancies, rentals across CBDs have been witnessing a decline.
The greener pastures are mostly defined with numbers and not execution capabilities or business model. For example, the absorption of office space has been upwards of 40 million square feet per annum for the last 3 years. The overall sentiments in this segment look bullish with PE investors also putting in money. As a matter of fact, even in retail real estate the PE investors are bullish and exploring even the Tier II cities having malls with good footfalls, brand mix and strong sales. This is what is enticing the residential developers looking for both the buyers as well as the capital investments.
Bottom Line: Come budget and all discussions and debates around…
The Government’s decision to allow 51% FDI in multi-brand retail and 100% FDI in single-brand retail under the automatic route was a definite crowd-pleaser that attracted giants like Walmart to make forays into the country.
JP Morgan will take up 830,000 square feet across 16 floors within one building on the Knowledge City campus, making this deal the single largest real estate transaction in Hyderabad.
The first quarter of 2018 has started on a positive note with a 23% YoY increase in the gross office take-up in India. As per Colliers International, approximately 11.4 million sq ft (1.02 million sq m) of gross absorption was recorded in Q1 2018.
The uncertainty regarding the continuity of fiscal incentives is an area of growing concern among various stakeholders of Special Economic Zones (SEZs). Although, more than 40.0 million sq ft of new supply is scheduled for completion by 2020, which is currently mandatory to qualify for the companies to get income tax benefits in SEZs, it seems unlikely for all the projects to complete construction by then.
Delhi-NCR based Central Park is venturing into commercial real estate with an investment of about INR 2,000 crore. Central Park will develop a 40 lakh sq ft mixed-use project in Sector 67, Noida which is also its first project in Noida.
Urban planning experts believe this is a much deeper question because it is not just about the existing urban centres but also about the way urbanisation is eventually going to happen in this country. As per the UN statistics the urban population of 40 crore in India would be 60 crore in less than 20 years of time. It clearly suggests that the existing cities won’t be able to fit in this additional 20 crore population, whether indigenous or migrants.
Are the CBDs really losing out as the benchmark of economic activity in the major cities of India? Well, if only Gurgaon business destinations as against Connaught Place or Nehru Place in Delhi-NCR are any indication, or if only BKC and Navi Mumbai as against Nariman Point in Mumbai is any indication, then the CBDs have lost a significant ground by all means of reputation and economic scale.