MUMBAI, 16th March 2016: Commercial real estate has had a good year in 2015 - the TCS transaction in Hiranandani Estate, Thane where 2.9 million sq ft of office space will be constructed by us, was cherry on the cake. Demand for Commercial Real Estate across India has been positive through 2015, and going into 2016 it looks likely that the momentum will increase.
In Mumbai and the Mumbai Metropolitan Region (MMR), demand for commercial real estate has been growing largely as a result of ‘consolidation’ and ‘growth’ by corporate entities. Consolidation was witnessed in commercial spaces spread across various locations, which a corporate entity wanted to merge by moving all the separate units into a single location, which would be in sync with the price-point that would suit the corporate entity as also provide facilities and amenities that the corporate entity would require.
This means locations which can offer large floor plates as also ‘built to suit’ commercial real estate will witness increased demand in 2016. In the MMR, Thane and Panvel look like the ideal locations where coomercila real estate demand will increase - and this demand will be successfully met.
Across the various industries that will pick up commercial real estate in 2016, the off-take will be different. So, the BFSI segment will have a different quantum of requirement as compared to IT and ITeS, again which will be different from regular corporate demand for offices (back-end offices and work spaces). The on-line retail industry (e-tailing) looks all set to invest in ‘brick and mortar’ by picking up commercial spaces, be it for display set-ups; storage and dispatch of goods or even for accommodating the new intake of human resources.
In 2016, positive economic sentiment will be reflected in growth-related leasing and buying of commercial spaces by business and corporate entities.
Niranjan Hiranandani is Founder & MD, Hiranandani Group. His recent initiative is Hiranandani Communities. He is the Founder and First President (West), National Real Estate Development Council (NAREDCO), which works under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India.