Indian commercial real estate offers investment opportunity worth USD 43-54 billion across top eight cities via Real Estate Investment Trusts-eligible ready stocks, says a report.
The report estimates that the value of REIT-eligible stock is seen to be the highest in Bengaluru (USD 15.8 billion) primarily due to the high volume of investible grade developments.
Mumbai (USD 14.5 billion) comes a close second due to higher capital values of commercial properties, despite having roughly half of Bengaluru's REIT-able stock, the report by RICS and Cushman & Wakefield said.
Stating that the estimated value of REIT-eligible stock in NCR is USD 11.04 billion which is the third highest, it said further, it is estimated that approximately 315 million square feet (msf) of office inventory is eligible for REIT across the cities.
Top eight cities include Bengaluru, Delhi NCR, Mumbai, Pune, Chennai, Hyderabad, Ahmedabad and Kolkata.
REIT-eligible inventory includes existing non-strata sold Grade A inventory, wherein Bengaluru, Mumbai and Delhi-NCR cumulatively account for over 67 per cent.
It said during 2015, pre-commitment levels across top 8 cities were witnessed at 11.8 msf, a 9 per centincrease over 2014 levels, and a 71 per cent increase from 2012 levels.
In January-March 2016, 4.6 msf of pre-commitment were witnessed, with Bengaluru and Hyderabad leading the way.
"Commercial office space will change significantly going forward. Robotics, automation will make a big difference in the jobs and also what kind of space required ... Besides the economy and what is happening in the industry, the demand will shrink for office space. So today development, really will have to plan for the future," CBRE South Asia CMD and Chairman RICS South Asia Board Anshuman Magazine said.
