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CRE Matrix Attends Midday BDA Expo 2022

CRE Matrix was proud to attend the Midday BDA Expo 2022 which is currently ongoing from 15th to 17th April 2022. Our CEO, Abhishek Kiran Gupta was invited as a special guest to speak on the importance of data analysis in the real estate sector at the first-panel discussion at the conclave on Day 1. 

Abhishek Kiran Gupta

Key Highlights from the Panel Discussion: 

  1. Abhishek Kiran Gupta opined that data is central to decision-making for better project design, improved project development, enhanced broking by advisers, better lending opportunities by banks, higher-quality investments by investors, and so forth. 
  2. Abhishek Kiran Gupta shared that the youth in the real estate industry have multiple choices to shape their career from development to broking to research & advisory to finance to fractional ownership and so on. 
  3. Abhishek Kiran Gupta advised all young entrepreneurs with start-up ideas to focus on building sustainable and profitable businesses and not pursue valuations and quick exits. 

Key Highlights from the Expo:

CRE Matrix visited over a dozen developer booths and spoke extensively with key sales representatives. 

  1. The event showcased housing sales of 15 apartments on day 1 till 4 pm. 
  2. The majority of the projects highlighted at the expo were from the Western Suburbs Macro-markets between Andheri to Dahisar. 
  3. Most projects were redevelopment or slum rehab projects. The event demonstrated a couple of FREEHOLD land projects as well. 
  4. It was very promising to witness the JDA/JV/Joint projects between developers. The Western Suburbs market developers appear to be very cordial with each other and display healthy competition with each other. 
  5. There has been a slowdown in housing inquiries and housing sales post a rise in stamp duty rates by 1% in Mumbai. However, the sales team believes home buyers will have to adjust to this new reality.
  6. Developers humbly articulated that they are most likely increasing home prices in mature projects citing a rise in raw material prices. 
  7. We were extremely impressed to witness that several developers have opted to tie up with brokers on Mandate sales wherein brokers exclusively market these projects directly through social media or mobilizing channel partners.

Our CEO Abhishek Kiran Gupta was honored to attend the real estate conclave and be able to share his wisdom. The 3-day Midday BDA Expo 2022 will conclude on 17th April. So, if you haven’t visited yet, now is the time to check it out! 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Co-Working Spaces – The New Work Culture Gripping the Nation

What is co-working? As remote work and hybrid work continue to increase in popularity, more and more people are asking the question, what exactly is a co-working space? Generally speaking, co-working is when several people from different companies share an office space, thereby allowing for cost savings and convenience via the use of common infrastructures, like equipment, utilities, receptionists, and custodial services. 

Co-working spaces deliver the same amenities you would find in a conventional office, along with a lot more. A chief differentiator is basically the flexibility since you don’t have to sign a long-term lease in a co-working space. 

Decoding the Immense Popularity of Co-working Culture 

Over time, co-working has been slowly but surely revolutionizing the work culture across the globe and has become popular in India as well. As the demand for shared office spaces rose throughout the country, it was felt more significantly in category A cities as compared to other cities in India. The rise of start-ups and a new generation of workers who favor a flexible work environment led to the trend for a co-working culture in these cities. 

Here are a couple of reasons why a co-working work environment is trending in India:

Cost-Effective Alternative to Renting and Leasing 

Thanks to the rapid rise in the rates of commercial spaces across India, it has become extremely expensive for a company of any size to lease a conventional office in an urban area. In such a scenario, co-working works as a breath of fresh air. To lease a conventional office, you will have to fork out a fixed initial amount that comprises a refundable deposit, advance maintenance charge, and other expenses for necessary entities. 

But if you choose a co-working space in Mumbai, all you will need to do is pay for a small monthly rent for your seat. This rent will be significantly lower compared to the monthly rent of your conventional office. Moreover, you will be able to use many amenities such as meeting rooms, printers, and so forth, at a reasonable rate or no additional cost. 

Preference of Flexibility

In recent times, there has been a change in the way office-goers are expected to go to work. Flexible timings and a more laid-back work environment have more or less become the norm. Offices that are able to offer such a setting are succeeding at keeping their attrition rate low. 

A simple and effective way to attain this goal is to choose co-working spaces. Just stroll into any co-working space in India, and you will witness vibrant colorful interiors that will give you a welcoming feel. Usually, a bright environment can lead to a rise in productivity and efficiency on part of the employees. 

Scalability Issue 

One of the major reasons why conventional offices are not as popular anymore is because of problems related to scalability. If you rent a conventional office in India, you will not be able to increase or downsize your team as per your will. On the other hand, co-working space in India delivers the perfect solution to this problem. 

You can easily increase or downsize your team based on your requirements. All you have to do is rent out a couple more seats to accommodate your expanding team or let go of some seats to downsize. 

CRE Matrix is India’s most preferred authentic data analytics platform that offers accurate and authentic data of co-working spaces that can help in competitive analysis.

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Rise and Shine of Commercial Office Spaces in India

There is no denying that the Indian commercial real estate market is enormous and is witnessing a healthy rise in demand in 2022 and this momentum is projected to continue for the rest of the year. 

Although the pandemic had a significant impact on the country’s increasing office segment with occupiers cutting back on spaces, surprisingly, the market has bounced back in 2021, with essential occupiers returning to the office. There is an immense belief that a strongly recovering economy and powerful progress in India’s startup ecosystem are going to help advance the growth trajectory upwards.

According to a joint report released by CRE Matrix and Colliers ‘Startups Scale Up’, startups are estimated to lease approximately 29 million sq. feet between 2022 to 2024, a 1.3 times surge from the 2019-2021 duration. The rise in entrepreneurship and the fast development of startups has been one of the most fascinating trends in the office space market in India. 

Startups are believed to be the fastest developing occupier growth among other occupier groups, and presently take up 10% of commercial office spaces. This has led to many openings for office space providers to reconsider and reposition their workplace offerings to draw a variety of occupiers. 

According to the India Office Report Q4 CY’21 by CRE Matrix, the past year has witnessed a rising demand for office leasing, an increase in office stock, stabilization of office vacancy, a rise in rentals, and sustained job growth in the startup space. Thanks to increased digital adoption across all businesses and the rise in vaccination numbers, there is hope that office demand in 2022 may return to pre-Covid levels. 

Increase in demand from Various Sectors 

More than 8,100 digital companies have been set up across the metro cities in recent times. These companies have generated around 6 lakh jobs in India. Increased availability of office space in India has propelled demand from banking, financial services, insurance (BFSI), manufacturing, and consulting sectors. 

For instance, Noida and Gurgaon alone have almost 8.5 million sq. ft. of commercial space in the pipeline. According to the India Office Report Q4 CY’21 by CRE Matrix, the majority of the demand for office leasing continued to be Tech (startups and IT/ITeS majors), BFSI, and Co-working segments. They added almost 58% to office demand in 2021 and 63% in the last quarter.

Factors Propelling Growth in Commercial Office Space Post Pandemic 

  • Co-working spaces are increasing rapidly in the top urban cities of India
  • The economy recovered fairly quickly and numerous companies reopened offices
  • Reverse migration to tier-1 and tier-2 cities and the requirement for office infrastructure in developing locations thereby drove commercial realty development in these cities. 
  • Companies are now providing improved facilities, digital integration, health, and safety features.
  • Infrastructure has improved a lot in smaller cities with numerous initiatives by the Government.
  • There has been a rise in the flexible office space in India. The businesses are planning to continue with alternative work models to maintain flexibility at workstations and enhance business profitability. 

According to the India Office report by CRE Matrix, there has never been a more significant period for the increase in demand for commercial office space in India, particularly after the damage inflicted in the economy thanks to the pandemic. Thanks to digitization across all industries, there will most likely be huge chunks of development in commercial office demand this year. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Real Estate vs. Other Investments

When you think of investing, you can do it in a variety of ways including real estate, bonds, stocks, CDs, or even gold. Thanks to the array of options, it often happens that one investment choice is more lucrative than the other. Based on current market conditions, it is also important to be aware of the type of investment to avoid and when? 

Let’s take a look at real estate investment vs. other investments to help you narrow down the options that are suitable for you.

Real Estate vs. Stocks 

Stock prices are deemed to be more unpredictable as compared to real estate. The rates of stocks can fluctuate quicker than real estate prices. The instability can make you apprehensive unless you plan to purchase and hold stocks, despite the unpredictability. 

Investing in real estateissimpler and better to understand than stocks. The housing sector in India is enormous which makes the home-buying journey multifaceted. But despite the complexity, the basics are quite simple. Moreover, owning a tangible asset can make you more in control of your investment when compared to purchasing slivers of ownership in firms via shares of stocks. 

Real Estate vs. Bonds

Despite their low-risk nature, investors may realize that bonds do not deliver the same profitability when pitted against other investments, particularly real estate in India. In numerous cases, the returns could be considerably affected by the rate of inflation. On the other hand, you will observe significant real estate growth and development during inflation. 

As material and labor expenses rise, rent typically follows, resulting in real estate investors achieving greater profits during this period. Bonds are not known to deliver the best returns as real estate. Across the board, rental properties generally outperform bonds thanks to their capability to produce cash flow, even during inflation or low-interest rates. 

Real Estate vs. CDs

Despite the low-risk investment opportunity, Certificates of Deposits (CDs) typically have lower profit margins when pitted against real estate. The potential for profits in CDs is directly affected by interest rates. When they are low, investors will not be able to get a high return on investment. 

It could take approximately 5-10 years for CDs to mature. Investors will not be able to use their funds during that period. But real estate showcases more liquidity. Even if investors are not able to sell a property, you can still tap into the current equity in many ways. 

Real Estate vs. Gold

Investing in gold may be a simple process but it is a long waiting game as compared to real estate investing. Thanks to the concept of price appreciation in real estate market, you can earn revenue as you wait for an asset to escalate in value, thereby leading to a higher overall cash flow. 

In a nutshell, while stocks, bonds, CDs, or gold are solid forms of investment and each of them has its own pros and cons, real estate delivers cash flow that is directly connected to the decisions you have made. Overall, investors may observe that real estate signifies the likelihood to produce yearly cash flow and profit from appreciation over time. 

At CRE Matrix, we have assessed vital real estate data comprising residential, commercial, retail, and warehousing, across different industries in India. CRE Matrix’s product IndexTap helps in making real estate investments with its extensive catalog of residential properties in MMR. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Importance of Data Intelligence in the Real Estate Market

Nowadays, data is changing the way businesses operate all over the globe by delivering rapid, valuable, and key insights. The most vital ‘raw material’ pushing the real estate market is data. It helps in unraveling new potential levels, from lead generation to work, efficiency, and ultimately reporting the findings. From evaluating a plethora of surveys and assessing products to developing future policies and solutions, data collection in real estate has slowly evolved into a distinct field of study. 

Let’s take a look at how data can contribute to the ever-developing real estate market:

Location

For both commercial and residential real estate, data can prove to be immensely useful. Real estate data providers in India offer their clients significant insights into the existing market patterns and trends. They ascertain the viability of various locations that are contingent on rental income, investment return, ratings, traffic, and occupancy. 

Customer Trends 

It is vital to have an in-depth understanding and awareness of the market trends when you’re investing in a residential or commercial property. Real estate developers must realize and comprehend the requirements of the customers, and this is where the significance of data enters into the picture. Developers can invest better if they understand basic factors such as competitors, the need for amenities, affordable housing, and so forth. 

Evaluating Competition 

If you’re the best real estate data analytics company, you would help in assessing the performance of the competitors. The data analytics firm offers comparable data for you to measure where you stand in the market. After a comprehensive analysis, you can come up with strong strategies to combat the competition and improve your position. 

Investment Performance 

Similar to two peas in a pod, no two properties can be identical. The different variables of every property are unique. It also applies to two separate properties in a single building. As time passes, these values also go through modifications. This is why it has become taxing to trace the sub-market performance of the properties. This is where data intelligence from a cutting-edge real estate analytics platform can assist in scrutinizing the fluctuating rate of the assets over time. 

Simpler for Home Buyers

Data intelligence is not just to benefit brokers and real estate developers, but it can also make it easier for those who wish to purchase or rent homes. It also helps in simplifying the research process to zero in on your dream house. The rates of various real estate properties can differ, thereby ascribing numerous factors such as neighbourhood quality, connectivity, available transportation modes, and so forth. In this scenario, real estate data analytics India can aid in accelerating the decision-making of the buyer, about the location.

At CRE Matrix, we have evaluated crucial real estate data of several companies across India. CRE Matrix is India’s most preferred authentic data analytics platform that allows stakeholders from various industries to evaluate and compare leasing data and more. 

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Homebuyers Alert! Indian Real Estate Property Prices to Rise Soon

The Indian real estate market has always been riding high on the wheels of volatility and dynamism owing to several social, political, and economic factors that keep on affecting the prices of the properties. Time and again, the industry has proved that it is far from accomplishing the stability of prices that affects the homebuyers the most at the end of the day.

This time again there have been various theories and stories within the close circuits of the investors, brokers, and homebuyers that the prices are surely going to elevate with the increase the prices of various materials such as steel, cement, sand, red brick, and others. Price rise in the purchase of these materials that are vital for the construction of the project will be loaded on the customers by the developers at the end of the day as they too have to recover their cost of expenses and run the show successfully. Though the prices of the materials have been increased, the same will be applicable in the price charts of the properties very soon as per various analyses and predictions by the common man as well as industry critics and insiders.

The Russia-Ukraine Crisis is deemed as one of the major reasons for the price hike that has affected other commodities prices such as oil. As per CREDAI,

  • The price of steel has gone up from Rs. 42,000/- to Rs. 84,900/- per tonne and cement by Rs.260/- to Rs.400/- per bag now.
  • The rates of four-inch brick have also elevated from Rs.6,500/- to Rs.8,000/-. The price of sand (per brass) has gone up from Rs 6,000/- to Rs 7,500/- now.
  • The price of wash sand (per brass) has also gone up from Rs 3,800/- to Rs 4,800/-.

The economic recovery of the Real Estate Market post the first and second wave of the pandemic was just the ongoing process and buyers have just begun to warm up to the market. There was a considerable rise in sales in the luxury housing markets in year 2021. We believe this handsome resurgence in Housing sales will see mean reversion as increase in home prices is surely going to affect sales.

According to the Reserve Bank of India House Price Index, average house prices rose by just 2.5% in the previous year and a further jump in the upcoming fiscal year will surely burn a deep hole in the pockets of home buyers and investors.

With various theories and stories floating in, the outcome will be pretty clear in the coming days but it is never a bad time to invest in real estate or buy your home owing to its high ROI and price appreciation.

For more such exciting analysis and details on real estate, visit CRE Matrix.

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Real Estate Lending 101 – What is Construction Finance?

Construction Finance has been a popular loan segment which has been keenly observed by stakeholders beyond the real estate sector as well, as it acts as a barometer of construction activity to a certain extent. CRE Matrix, through this blog article, takes you through the A to Z of construction finance.

commercial real estate

What is Construction Finance?

Real estate developers need a consistent flow of funds for numerous construction-related works at various stages of projects to guarantee the timely completion of projects. Construction Finance loan is generally intended to meet this need of real estate developers across the life cycle of their intended or ongoing construction projects against the project sales receivables.

Since they are deemed to be comparatively risky, construction loads tend to have higher interest charges as opposed to conventional mortgage loans.

Why Do Contractors Need Construction Finance? 

Construction businesses generally have huge up-front expenses that burn through cash at the commencement of a project, much before payments start rolling in. This gap makes it tough to monitor cash flow from the beginning of a job. Contractors usually require financing to progress: to pay for material expenses on larger projects, to fund new equipment, or to match escalated payroll expenses. Financing can aid construction businesses to smooth out cash flow cycles whether the economy is declining or proceeding towards a construction boom.

Features of Construction Finance 

  • Loans that can be availed by the best real estate developers/builders
  • Can be used for growing and building residential or commercial sites
  • In Tier 1/Tier 2 cities, customized offerings to suit the requirements of  developers

Benefits of Construction Finance 

  • Professional and transparent technique
  • Organizing enormous funding from banks/financial institutions arranging bank guarantees
  • Flexibility in tenor as well as offering a variety of options for repayment
  • Enable tie-ups with banks/HFCs to offer housing finance to customers (home buyers)
  • Strong and effective service delivery model that provides door stop facilities to guarantee simple and quick approval and disbursal of loans

In a nutshell, construction finance loans are usually taken out by real estate developers or homebuyers who are custom-building their own houses. After construction has concluded, the borrower can either refinance their construction loan into a permanent mortgage or acquire a new loan to repay the construction loan (occasionally referred to as the ‘end loan’). 

The borrower might only be needed to pay construction loan rates or interest on the loan while the project is still ongoing. A couple of construction finance loans could entail the balance to be paid off completely by the time the project is complete. 

CRE Matrix, via RE Loans, gives a detailed insight on construction finance loans by numerous developers across the country and the banks/NBFC/funds that provided the loans to them. CRE Matrix is the country’s most preferred authentic analytics platform that allows stakeholders to access analytics from an array of sectors. Users can assess and compare construction finance loans and do so much more on CRE Matrix platforms.

For more CRE industry insights and data research do contact us.

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Real Estate Leasing 101 – Deep Dive into Rent Free Period

When drafting a leasing contract, both tenants and landlords need to be mindful of all the clauses that are present in a commercial lease agreement. There are numerous general clauses in a rental agreement form.

However, specific clauses are significant in their effect on the lease relationship and need to be given extra attention while preparing agreements. A couple of these clauses comprise of the security deposit, rent-free period, force majeure, indemnity provisions, and the right to renew or prolong the lease.

Let’s look at rent-free period in detail:

What is a Rent-Free Period?

The rent-free period is approved by both the tenant and the landlord. Therefore, the renter is not obligated to pay the rent during this time. This duration is used to facilitate the tenant to set up and establish all the needed equipment for them to utilize the commercial property for the proposed reason.

This duration can increase from three months to eleven months, contingent on the scale and extent of installation needed in the property. This period can also be stretched if the requirement arises. Nevertheless, it would be good to cite the maximum length of the rent-free period after joint agreement between the two parties. A clause declaring that the fit-outs may be eliminated and taken back by the renter can also be integrated in a commercial lease agreement.

Benefits of a Rent-free Period

  • If the landlord is promoting a new lease of commercial property and wishes to provide a rent-free period as an incentive to prospective occupiers, particularly if renters are apprehensive about startup expenses or footfalls in the present economic climate.
  • If a significant ‘fit-out’ work is required to place the commercial property into an appropriate condition to permit the tenant to trade. In such a scenario, a rent-free period will facilitate the renter to make use of the cash which might otherwise be utilized on rent to execute the works and enhance the condition of the premises. For instance, if work is essential to fulfill the health and safety protocols for a restaurant, or if the occupier is altering the use of the property and needs to basically modify the layout.
  • It can assist the renters’ cash flow during an existing lease, with a view to enable the future landlords’ rental yields. In this case, negotiation could have a landlord consenting to a lower rent with their occupier during an existing term in return for other revisions to the lease. For instance, if there is a break clause, the tenant assents to push back their ‘break date’ or relinquish their right to break and thus essentially extends the overall length of the term (by a tenant waiving their capability to end a lease early).
  • If the lease is about to expire soon and the landlord wants the existing tenant to continue with their arrangement, then a rent-free period clause could be offered to the tenant. It can be a way to mitigate the renters’ temporarily delayed cash flow, instead of forfeiting their lease or having to take other enforcement action.

In a nutshell, rent-free periods are especially common when times are tough economically. This specific incentive is offered to motivate tenants to sign leases. It is interesting to reflect as to why a landlord does not lower the level of rent and instead opts for rent-free period as this allows him to charge the same rent from other prospective tenants, who may not fully know about the rent-free discounts.

At CRE Matrix, we dissect every lease and figure out the effect of rent-free period on the overall lease economics.

For more CRE industry insights and data research do Contact us.

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Real Estate Leasing 101 – A to Z about CAM (Common Area Maintenance) Charges in India

Negotiating a lease for your business is not only a complicated procedure but if you’re a novice at it, you will most likely stumble into several new, possibly confusing concepts. One such term is common area maintenance (CAM). This is the fee that tenants pay in commercial leases for areas that are common to all renters. 

What exactly are Common Area Maintenance (CAM) Charges?

There are numerous tenants in a commercial building and the shared areas need to be maintained regularly. A CAM (Common Area Maintenance) expense is a surplus expenditure, in addition to the base rent, paid jointly for the maintenance of the commonly owned premises like the lobbies, elevators, parking lot, laws, corridors, public bathrooms, and building security. 

They are fees paid by tenants to landlords to assist in covering expenditures related to overhead and operating costs for common areas. CAM rates are generally described in the lease agreement to dispel any uncertainty as to what they might entail. It is vital to completely comprehend these charges prior to signing a new lease. 

How is CAM Fee Computed?                                                                             

At the commencement of every year, the property manager projects common area maintenance chargesfor the property in its entirety or a part of the yearly budget. Then, that CAM estimate is split correspondingly across the tenants in the building. Your percentage of the charges is gauged by dividing your square footage by the gross leasable portion of the building. This total cost is computed into your monthly operating outlay, so it can be paid in little increments all through the year. 

Is CAM Fixed or Variable?

The CAM fees can either be ‘fixed’ or ‘variable’. The tenants need to get it incorporated in the lease agreement as to what type of common area maintenance charges they will have to pay – whether it is fixed or variable. If it is variable, then it must be explained on what factors the fees diverged. Then, it must also be included in the contract as to what percentage will the CAM fee be raised from one year to another. Tenants need to be aware if they are charged with ‘administrative fees’ apart from the CAM fees and what would be the separation of charges for the two. 

Drawbacks to Avoid 

Utmost care needs to be taken when consenting to the CAM charged by the tenant. It is highly recommended to scan through the financial documents of the landlord carefully to reach the accurate CAM fees or to clear out the anomalies in the CAM charges in real estate suggested. What encompasses common area maintenance charges is described roughly to pass on the operational expenses of the commercial building as much as possible to the tenants. 

Unless the lease agreement specifies what comes under the CAM charges, the tenants are counseled prior to signing the lease agreement to get a clear understanding from the landlord about the following:

  • Salaries of the supporting staff as well as the security guards in the common areas
  • Insurance expenditures of the building
  • Restoration and revamping of the building, parking lot, and any supplement to the building at a later stage such as solar panels of the rooftop and so forth. 
  • Electricity and water charges in the expenses in the common areas. 

Where can you find the CAM charges in the building which interests you?

At CRE Matrix, we have analyzed over 1 Lakh lease documents across the country and many of these contain CAM charges. CRE Matrix is the India’s most favorite authentic analytics platform that allows stakeholders from different industries analyze CAM charges and much more.

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Introducing the 2021 India Office CRE Matrix Quarterly Report: New Research on Key Players Gradually Returning to Office and its Impact on the Economy

Even though the pandemic had a huge impact on India’s rising office segment with occupiers cutting back on spaces, surprisingly, 2021 has showcased the return to normalcy; with essential occupiers going back to office. With the Omicron variant putting a break on the momentum in January 2022, there is immense faith that a powerful recovering economy and a strong advancement in India’s startup ecosystem are expected to move the growth trajectory upwards.

Our objective with the 2021 India Office CRE Matrix Quarterly Report is to share key insights into office demand, supply, rentals, vacancy of Grade A office spaces.

Key Takeaways from the 2021 India Office CRE Matrix Quarterly Report

As per the India Office Report Q4 CY’21, there has been an increased demand for office leasing, rise in office stock, stabilization of office vacancy, an increase in rentals, and continued job growth in the startups space.

The insights make it clear that even though a complete ‘Return to Office’ was not achieved, there were significant strides that were taken. Thanks to the rise in digitization across all sectors and the increase in vaccination numbers along with milder symptoms of new variant, there is hope that office demand in 2022 may revert back to pre-Covid levels.

  • Office leasing in India observed a magnificent recovery. The last quarter of 2021 witnessed 12.1 msf of office demand. Interestingly, this was nearly 80% of the demand viewed in Q4 2019 (pre-Covid). On a yearly basis, the demand rose to 30% as opposed to CY’20.
  • Industries who made the most demand on office leasing continued to be Tech (startups and IT/ITeS majors), BFSI as well as Co-working segments. They contributed nearly 58% to office demand in 2021 and 63% in the last quarter.
  • New deliveries in Q4 2021 stood at 1.6% of the total present office stock and the entire year of 2021 added 6.2% to existing office stock. Hyderabad and Bengaluru, with 10 million square feet apiece, delivered half of the total stock in 2021.
  • The office vacancy in India finished the year at 16.5% – approximately 210 basis points (bps) more when compared to the end of 2020. After witnessing nine quarters of increases, office vacancy is now steady and will probably reverse in 2022. Bengaluru and Chennai observed a decline in vacancy as opposed to Q3 2021. Overall, Chennai was the only city to see a drop in vacancy.
  • Grade A office spaces for rentals has seen a steady and gradual increase. Since market rents continue to more expensive than passing rents, we can safely say the pandemic-related concessions are behind us.
  • Job development in the Startups space is expected to continue growing and a complete ‘return to office’ is believed to happen by the end of Q2 2022, if not earlier.

Download the complete India Office Market Report Q4 for key insights and to understand how the economy is impacted thanks to players returning to office.

What CRE Matrix CEO Abhishek Kiran Gupta shared about the 2021 India Office CRE Matrix Quarterly Report

The world is dealing with the biggest public health crisis in recent history which poses immense challenges. While we do not expect it to disappear overnight, the economy has witnessed resurgence in the last year, particularly in the final quarter of 2021. There has never been a more significant time for the rise in demand for office leasing, especially after the kind of damage caused to the economy owing to the pandemic. Thanks to digitization across all sectors, we will most likely witness growth in office demand this year.”

About this Study

CRE Matrix has conducted this research based on authentic registered data collected across 6 major cities of India – MMR, NCR, Bengaluru, Hyderabad, Pune and Chennai. We have also done extensive research for occupancy and upcoming supply with the help of our large feet on street team. Also, our interactions with key stakeholders in the commercial real estate sector has also helped us in understanding the current scenario and the upcoming trends in this segment.

Download the complete 2021 India Office CRE Matrix Quarterly Report here.

For more CRE industry insights and data research do Contact us.