Tag: Colliers India

Business

Colliers India facilitates significant land deal spanning 1.6 acres in Bengaluru’s Sarjapur for Concorde Group

Jun 28, 2024 by Sujata Muguda 0 Comments #a leading Bengaluru-based real estate developer, #BENGALURU, #Bengaluru’s Sarjapur for Concorde Group, #BKH units, #Chairman, #Colliers India, #Concorde, #Nesara B S

Bengaluru, India, 28 June 2024: Concorde, a leading Bengaluru-based real estate developer has acquired a prime 1.6-acre land parcel located on Sarjapur Road, Bengaluru. Set to be a premium residential complex, this joint development will have a gross development value (GDV) of ₹200 crores. The strategic acquisition was facilitated by well-known real estate consulting firm, Colliers India, and marks a significant milestone for Concorde as it continues to expand its footprint in the city.

The Colliers team was instrumental in conducting a market analysis that assisted in identifying a suitable space that aligned with Concorde’s business objectives and vision. The leading real estate consulting firm held strategic rounds of negotiation with all parties involved to arrive at a deal structure that served the best interests of the landowner and developer.

The proposed project will comprise 2 & 3 BKH units, spread over a high-rise tower of ~2.25 lakh sq.ft. Its strategic location on the Sarjapur main road ensures excellent connectivity and convenience for residents. The upcoming project will feature smart and tech-enabled elements for enhanced security and energy conservation through home automation. Additionally, it will include an Evolve signature clubhouse with world-class amenities, adhering to Concorde’s SMART philosophy.

Commenting on the initiative, Nesara B S, Chairman, Concorde said, “We are thrilled to bring another landmark development to Sarjapur Road. This acquisition reinforces our commitment to delivering innovative and high-quality living spaces that meet the evolving needs of modern homebuyers in strategic locations. With the support of Colliers India, we were able to structure a deal that benefits both the landowners and our development goals.”

“Concorde is building homes of the future with projects that boast modern architecture and tech-infused features, and our team is proud to have facilitated this transaction. By formulating the correct structure, we were able to meet the business requirements of the developer and landlord. With our strong industry relations and long-standing ability to deliver bespoke solutions, we consistently drive success for our clients and the overall real estate sector.” added Piyush Gupta, Managing Director, Capital Markets & Investment Services, Colliers India.

Sarjapur Road boasts excellent connectivity to key IT hubs such as Whitefield, Electronic City, Outer Ring Road, Marathahalli, and Koramangala. The area’s infrastructure is set to improve further with the completion of Namma Metro’s phases two and five, and the proposed 74km Peripheral Road. This region has experienced the highest growth in connectivity, making it an ideal location for residential and commercial development.

Business

In 2021, Indian real estate has gained significant amount of the lost ground: Colliers

Dec 27, 2021 by Gouri Achary 0 Comments #Asia, #Colliers, #Colliers India, #Indian Real Estate, #Ramesh Nair, #real estate, #Vimal Nadar

Occupier confidence has improved in the latter half of 2021 with occupiers closing large office deals, cementing the resilience of the sector and the underlying importance of offices. Occupiers remain focused on enhancing the well-being and experience of their employees as they plan to return to the office, chasing lucrative leases while realigning long-term plans. Developers are determined towards asset enhancement through requisite retrofit to remain relevant and retain tenants.

“The year 2021 was a watershed moment for India’s real estate sector. Even when the going was tough, the sector not only remained resilient but also emerged stronger than expected. India’s office sector is coming out of the woods, with demand back to pre-record levels. The year 2022 will even be better, even if marred by the new Covid-19 variant. We have now learned to live with uncertainty. Gross absorption in 2022 should be about 15-20% higher than this year as occupier confidence is back in the market. In terms of global capital chasing real estate, the office will continue to remain a dominant sector, but residential and industrial & warehousing will strengthen in 2022 aided by strong business fundamentals,” said Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers.

From the second half of 2021, technology players and flex space operators have been taking large spaces. Occupiers who had earlier focused on renewing deals are now looking at new leases. As employees return to the workplace, next-generation offices replete with health and wellness features are a top draw for occupiers.

Segments that beat market expectations

During the year, some segments surpassed market expectations, led by a tectonic shift in preferences and behaviour of occupiers, homebuyers and investors. We look at some of the segments that have emerged strongly in 2021.

Flex space growing, but not just in top cities

Flex workspaces are leasing spaces backed by occupiers’ back-to-work plans and pre-commitments. Flex spaces have come to the fore after a gap of a year, to occupy a significant share in leasing at 16-18% in 2021. Total flex stock in metro cities is likely to rise to about 40 million sq feet in 2021. Tier-II cities are witnessing increased growth of flex spaces. Flex spaces stock in tier II cities is estimated to have grown more than two-fold this year to 5.5 million sq feet.

Investments in residential make a comeback

The residential segment saw strong recovery gains led by government stimulus, market-led price discovery, new demand. Investment volumes in the residential sector made a comeback in 2021. In the first nine months of the year, investments in the residential sector stood at USD420 million, surpassing the volumes seen in the whole last year. Investors are seeking a buy-in in the asset class, especially in the near-completion stage. Investments are spurred by renewed residential demand, led by a higher inclination to own homes, low home loan rates and steady prices.

Industrial investments inch towards USD1 bn

The industrial segment is likely to see investments inching towards USD1 billion in 2021, led by large global investors buying ready and greenfield warehousing projects. Since last year, investors have been exploring industrial space. While data centres gained traction this year from developers and investors, this year also saw the maiden investments deal in the life sciences sector.

“Despite a devastating second wave, investments into the real estate sector have been unwavering, especially from global investors. Interestingly, investors are also betting on new-age sectors like life sciences and data centres. As per a recent Colliers survey, industrial and logistics assets will be the most sought-after real estate assets in the APAC region, with more than 20% of investors anticipating capital value gains of 10%-20% in value-add assets in 2022, supported by tailwinds and large-scale economic transformation. This shows the immense potential. Moreover, the centre’s new warehousing policy has the potential to transform the warehousing sector to make it more competitive. Overall, the sector’s resilience and growth will give way to more innovation next year, in accordance with the changing times we live in, says Vimal Nadar, Senior Director and Head of Research, Colliers India.

Overall, the real estate sector will see stakeholders pivoting to different models, resetting to the new way we work, live and entertain. Developers, investors and buyers will work towards bringing in sustainability and cutting carbon emissions. The market will also see gains from sectors such as Electric vehicles, solar panel manufacturing, etc in the coming years.

Business

India’s flex space stock to cross 60 million sq ft by 2023

Nov 23, 2021 by Rekha Nair 0 Comments #CEO (India) and MD (Market Development-Asia), #Colliers, #Colliers India, #Founder & CEO, #Paras Arora, #Qdesq, #Ramesh Nair, #Senior Director and Head of Research, #Vimal Nadar

Gurugram– Colliers forecasts flex workspace stock to cross 60 million sq ft in metro and non-metro cities by 2023, as occupiers embrace agility and flexibility in their work models, mentioned in a recent release by Colliers and Qdesq.

The demand for flex space will be largely driven by Consulting, IT-BPM and E-commerce companies who are establishing multiple satellite offices in suburban locations in metro cities. Metro cities remain the stronghold of flex spaces, accounting for about 88% of the total flex stock as of Q3 2021, mentioned in the report.

“Reverse migration to Tier 2 cities, constant growth of new startups and increased occupier confidence driven by vaccination rates, have helped in overall improvement of the flex industry across the country. The flex market in India is evolving with many enterprises incorporating a flex space component in their portfolio. It is encouraging that flex spaces are currently operating at about 70%, with the trend moving towards pre-pandemic levels. Occupiers are looking at next-generation offices and the future workplaces will be unique to each occupier. Flex workspace operators must continue to focus on customization and providing on-demand workspaces,” said Ramesh Nair, CEO (India) and MD (Market Development-Asia), Colliers.

The flex market in India is evolving with many enterprises incorporating a flex space component in their portfolio. There are currently 3410 flexible centres across major cities, operating at about 70%, with the trend moving towards pre-pandemic levels.

“The next 12-18 months is expected to witness businesses of all sizes reassessing the use of their office. The importance of agility and decentralization has been underlined and highlighted by the pandemic and will become critical to businesses as they adapt to change, impelling the industry forward and that’s what the future looks like for India. Making Flex mainstream”, said Paras Arora, Founder CEO, Qdesq.

Flex space is also emerging in non-metro cities as large enterprises are moving to a decentralised structure focusing on the flexibility and convenience of their employees. The total flex stock in non-metro cities to reach 7.8 mn sq ft by 2023, a 50% increase from current levels.

Major non-metros like Ahmedabad, Coimbatore, Indore, Jaipur, Kochi and Lucknow are witnessing robust activity and are the top 6 emerging non-metro flex locations.

Occupancy levels inching towards pre pandemic levels:

After a dip in occupancy and prices during covid, flex space is reviving in the latter part of 2021 with an average occupancy of 71%. Prices per seat have also seen an improvement by 21% as of September 2021, after falling by about 30% during the pandemic.

“Metro cities are seeing renewed demand from occupiers across the spectrum in the latter part of 2021. Even in non-metro cities, occupiers are taking up seats for their sales and regional offices, leading to higher occupancy. Occupiers are evaluating the concept of ‘work from near-home’ through satellite and hub-and-spoke offices. We foresee that these offices will be an amalgamation of traditional leases and flex spaces,” says Vimal Nadar, Senior Director and Head of Research, Colliers India.

Colliers recommends flex space operators to focus on enhancing occupier experience by digitizing workspaces and providing add-on services, which shall receive more enquiries. As occupiers focus on health and wellness, demand for well managed Grade-A properties with superior infrastructure is ought to increase. Inclusion of digital infrastructure and smart facilities shall also contribute in achieving greater operational efficiency, reduce energy consumption and higher customer retention.