Office real estate in India- statistics and facts
The Indian office real estate market has driven the growth of the commercial real estate sector in the past decades. Widely known as the destination of low-cost outsourcing in the early 2000s, India has transitioned to more high-end processes in the manufacturing, artificial intelligence, and engineering sectors.
The office real estate market has been at the forefront of these developments. Once dominated by information technology, office spaces are being increasingly leased by other sectors as BFSI (banking, financial services, and insurance), engineering, manufacturing, e-commerce, and co-working sectors. The sector has demonstrated consistently low vacancy and high absorption rates.
Contributing to this recovery, the introduction of the Real Estate Regulation & Development Act (RERA) and Real Estate Investment Trusts (REITs) has significantly boosted investments in commercial real estate, with office properties becoming the top choice for foreign PE investors. Meanwhile, due to restrictive lending terms banks and non-banking financial companies, Indian developers are increasingly turning to Alternative Investment Funds (AIFs) for financing. Regulated by SEBI, AIFs offer customized financing solutions and have grown significantly in the past decade, earning investor trust and confidence.
The office real estate market has been at the forefront of these developments. Once dominated by information technology, office spaces are being increasingly leased by other sectors as BFSI (banking, financial services, and insurance), engineering, manufacturing, e-commerce, and co-working sectors. The sector has demonstrated consistently low vacancy and high absorption rates.
Rebuilding investor’s confidence: REITs and AIFs
The COVID-19 pandemic had an unprecedented impact on the global commercial real estate sector and transformed the perspectives on workspaces. However, despite the setback, the industry has resiliently recovered driven by surging demand for office spaces and the resulting leasing transactions.Contributing to this recovery, the introduction of the Real Estate Regulation & Development Act (RERA) and Real Estate Investment Trusts (REITs) has significantly boosted investments in commercial real estate, with office properties becoming the top choice for foreign PE investors. Meanwhile, due to restrictive lending terms banks and non-banking financial companies, Indian developers are increasingly turning to Alternative Investment Funds (AIFs) for financing. Regulated by SEBI, AIFs offer customized financing solutions and have grown significantly in the past decade, earning investor trust and confidence.
