In 2010, post the global financial crisis, the commercial real estate sector of India reversed and put itself on a slow yet steady growth path. From 2016-2019, the annual office space leasing activity increased from 41.6 million square feet to 58.6 million square feet, translating into a compounded annual growth rate of 12% over the three years.

LOREM IPSUM DOLOR SIT AMET

India has emerged as the preferred destination for setting up global in-house and research and development centers for topmost global firms, leading to global investors and private equity firms showing keen interest. In the year 2019, the commercial real estate sector attracted foreign and domestic investments to the tune of 3.3 billion dollars.

Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

- JEAN-LUC PICARD

Lower operating cost, availability of abundant talent, and business-favorable state policies have contributed to this massive growth – making commercial real estate the blue-eyed boy of India’s growth story.

LOREM IPSUM DOLOR SIT AMET

  • Lorem ipsum dolor sit amet.
  • At vero eos et accusamus et iusto odio.
  • Excepteur sint occaecat cupidatat non proident.

At the end of Q1 2020, with the onset of COVID-19, a pandemic resulting in job losses, pay cuts, and health care, the Indian real estate sector was ailing. A nation-wide lockdown initiated the largest remote working experiment which made businesses press pause on their real estate decisions, added to this was a labor shortage following a mass exodus of migrant workers from metro cities back to their hometowns. This put commercial real estate markets’ resilience to test.

Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

- JEAN-LUC PICARD

The resurgence of the coronavirus has stoked fears that a V-shaped economic recovery could be out of reach, while also spurring concern that banking regulators, worried about potentially spiraling risks to the financial system, might crack down on banks and others exposed to souring real estate.