India’s commercial office segment has been the favourite asset class of institutional investors over the years. They have allocated USD 17.6 bn in the form of direct investments during 2005-2019. JLL research indicates that 294 mn sq. ft. of office stock would be eligible for REIT. This would translate to an additional investment opportunity of USD 35 bn in near term.
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.