Colliers report sees refurbishment of 120 mn sq ft of Grade A offices
The top 6 cities, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune, are seeing a strong pipeline of office buildings in the next 2-3 years, with about 180 million sq ft of Grade A office stock in various stages of construction, according to a report.
At the same time, these top cities have Grade A office buildings of about 120 million sq ft that can be refurbished, said Colliers’ latest report ‘Technical Due Diligence: Risk-proofing Realty’.
The report has captured a slice of the 300 million sq ft pie of existing and upcoming commercial office buildings.
“Developers and investors are seeking professional expertise to evaluate their upcoming projects and solutions for the upgradation of their existing ageing properties,” said the report.
“Investments in real estate are growing, with increased traction from global investors.
“In the last five years, foreign capital flows in real estate jumped 3 times to US$24 billion, compared to the preceding five-year period,” it said.
As the country is seeing a spurt in investments, there is an increased demand for state-of-the-art real estate projects which are technically and operationally compliant.
The top six cities have about 120 million sq ft of ageing Grade A stock, which is more than 15 years old.
Due Diligence can help developers and landlords understand the scope of upgradation and achieve higher traction from occupiers, especially in the prime micro-markets of major cities.
“Post-Covid-19, developers and investors have become more cognizant about the efficiency of the projects. It has become pivotal for them to understand the associated risks and upsides of any prospective project,” said the report on 6 Oct 2022.
“Stakeholders can risk-proof their projects by making a small investment in Due Diligence and maximize their returns on investments,” said Vimal Nadar, Senior Director, Research, Colliers India. fiinews.com
