Commercial Realty Recovers As Government Unlocks Economy
Krish Raveshia, CEO, Azlo Realty
As India moves towards recovery, the dynamics of commercial is improving rapidly. Knight Frank India quarterly report – India Real Estate Update – Q3 2020 presented an analysis of the residential and office market performance across top eight cities for the July-September 2020 (Q3 2020) period. In comparison with Q2 2020, the report observed gross office leasing across these cities witnessed a strong recovery, registering 80% growth to 0.44 mn sqm in Q3 2020. Whereas new office completions during the same period, reported recovery of 126% to 0.33 mn sqm, compared to Q2 2020. In terms of rental values, the recovery in office transactions and new completions helped rental values remain stable
As an asset class, real estate is inevitable to re-invent and hence commercial is doing the same to stay relevant in this new paradigm. The definition of offering and amenities within commercial is changing leading to pumped demand. We cannot dispute that pandemic has led to a disruption and led to lot of changes in real estate sector.
Having said that, accelerated adoption of technology and artificial intelligence within the sector has played a role in revamping. The last quarter has been exceptional to say the least. At the outset, as the process of Unlocking the economy picks up pace, organisations and employees are keen to be back to offices so as we go forward, normalcy is soon to return. Office demand will remain robust in the medium to long-term as the fundamentals are strong – with low vacancy, stable rental growth and limited upcoming supply. We are only awaiting mass transportation to see a sea change.”