India's Office Market to Remain Robust Despite Global Uncertainties: DLF Official
New Delhi, India's office market is set to continue growing despite global uncertainties, thanks to the country's strong competitive advantage in terms of English-speaking human resources and top-quality workspaces at affordable costs, according to a senior official from realty major DLF Ltd.
Addressing a CII conference on real estate, Sriram Khattar, Vice Chairman & MD (Rental business) at DLF, noted that the demand outlook for both office spaces and retail real estate remains bullish. He emphasized that India offers a compelling reason for international companies to set up their base here.
“In offices, India has a very, very strong competitive advantage, both in terms of English-speaking young Indians who are available to global companies at a fraction of the cost, and at the same time, global quality commercial workspace solutions, which are also available at a fraction of the cost,” Khattar said.
A combination of these two factors makes it an attractive option for any international company wanting to establish a presence in India, he added. Khattar, who is also Co-Chair at CII National Committee on Real Estate & Housing, further stated that given the strong digital backbone and the cost of this infrastructure, the trend is likely to continue irrespective of the changing multi-polar geo-economic and political situation across the globe.
According to real estate consultant Knight Frank India, the Indian office space stock has surpassed one billion square feet, making the country the fourth largest globally. The office demand has strongly recovered post-COVID pandemic, with gross leasing across the top 7-8 cities hitting record levels in the last calendar year.
On the retail real estate front, Khattar noted that organized retail is growing faster than the overall retail sector, which in turn is growing faster than the economy. He highlighted that the introduction of RERA (Real Estate (Regulation and Development) Act) has created a platform for transparent legislation and a framework where institutional players can develop and grow.
Khattar also mentioned that the GST rationalization and the REIT (Real Estate Investment Trust) framework have been positive for the sector's growth. On the policy reform front, he stated that CII would take up issues such as input credit for properties that are leased and properties that are let out, GST exemption for rental housing, and a centralized digital portal for building plan sanctions to avoid delays.
DLF Ltd, one of India’s largest real estate developers, has a strong presence in both residential and commercial segments. The company has been at the forefront of driving sustainable and innovative solutions in the real estate sector, contributing significantly to the growth of the industry in India.
