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The Hindu
12-05-2025
- Business
- The Hindu
Chennai's office real estate market inventory has upgrade potential to 50% says report
Chennai's office real estate market presents a significant opportunity for value enhancement through strategic upgrades with 52-57 million sq ft of the total 89 million sq ft office stock in the city which holds upgradation potential, representing a substantial portion of the market, says a report published by real estate consulting firm CBRE South Asia Pvt. Ltd. According to the report titled 'From Existing to Exceptional: A Strategic Approach to Retrofitting Indian Office Spaces', the opportunity is largely concentrated in OMR Zone 1, OMR Zone 2, Mount Poonamallee High Road, and sub-markets, indicating specific areas where modernisation efforts can yield the most impact. The estimated assets present an opportunity to yield rental premiums up to 20%. The achievable rental premiums post-upgrade may vary across these micro-markets, it said. The potential investment opportunity in the city is estimated to be ₹39-66 billion. By focusing on upgrading these assets, developers and investors can tap into the demand for modern spaces and potentially achieve attractive rental increases, particularly in the more promising micro-markets. This strategic approach to retrofitting can enhance the overall competitiveness and attractiveness of Chennai's office market, as per the report. 'India's office real estate sector is undergoing a significant transformation, with Chennai is emerging as a crucial driver of this evolution. A substantial portion of the city's existing office inventory is currently exceeding 50% of its 89 million square feet, has been identified for necessary upgrades,' says Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE said. This initiative extends beyond mere value enhancement, serving as a critical step towards aligning office spaces with global benchmarks in sustainability, wellness, and technological integration, he added. ENDS
Hans India
08-05-2025
- Business
- Hans India
Malls, High Streets Compete as Entertainment Preferences Shift
India's retail entertainment ecosystem is undergoing a significant transformation, with malls, high streets, and standalone experience centers rapidly adapting to evolving consumer demands, according to the newly launched Retail Level-up – The Entertainment Edition report by CBRE South Asia Pvt. Ltd. in partnership with Invest India. The CBRE & Invest India Retail Entertainment Survey 2024-25 blends stakeholder interviews and survey responses from key players, including developers, theme park operators, and family entertainment centre (FEC) providers, offering insights into consumer preferences and sector growth. As per the findings, interactive formats such as bowling alleys, rock climbing, escape rooms, and arcade gaming are drawing higher footfall compared to traditional passive formats like museums or theatrical performances. Among the most frequented options, amusement parks and bowling alleys continue to dominate due to their broader accessibility and deeper market penetration. Child-focused zones, including indoor playgrounds and gaming arcades, are witnessing an uptick in demand, driven by families seeking regular and cost-effective leisure options. Roughly 90 per cent of surveyed individuals expressed willingness to allocate up to Rs 4,000 monthly toward leisure and entertainment experiences, with the Rs 1,000–Rs 2,000 range cited as the most common spend. Respondents from younger age groups particularly favored affordable yet engaging experiences, indicating the need for pricing strategies that balance cost with entertainment value. Additionally, 65 per cent of those surveyed preferred either pure-play entertainment or entertainment paired with food and beverage offerings. Regular participation patterns showed that around 29 per cent engaged in entertainment activities once every three to four months, with stand-up comedy, game arcades, and children's play zones among the top selections. While malls maintain their stronghold in the entertainment landscape, 35 per cent of Gen Z respondents revealed a preference for high streets, and 31 per cent favored standalone centres, pointing to a shift in venue preferences based on convenience and novelty. This evolution suggests a diversifying ecosystem that's no longer reliant solely on traditional mall formats. Anshuman Magazine, Chairman & CEO of CBRE for India, South-East Asia, Middle East, and Africa, noted that entertainment formats are reshaping retail spaces. 'The inclusion of family-centric and experience-oriented zones is redefining mall strategies. Developers now see these entertainment anchors as key components for future-proofing properties through optimized tenant mixes.' Echoing this, Ram Chandnani, Managing Director of Advisory & Transaction Services, CBRE India, pointed out the consistent revenue generation across both metro and tier-II markets. 'Placemaking through experiential dining, green areas, and community spaces is leading to sustained footfall and customer retention. Entertainment zones are not just an add-on—they are central to the consumer draw.' With consumer engagement becoming increasingly experience-led, developers and operators are aligning retail strategies to match this shift.
Time of India
03-05-2025
- Business
- Time of India
BM Property: Bengaluru attracts major real estate investments
CBRE South Asia Pvt. Ltd. Confederation of Indian Industry Bengaluru continues to cement its position as a key investment destination in India's real estate landscape, as per the latest report jointly released byand the(CII).Titled Bricks & Billions – Mapping the Financing Landscape of Real Estate, the report highlights evolving financing trends and investor sentiment across Indian cities, with Bengaluru emerging as a major beneficiary of institutional Mumbai recorded the highest inflow of USD 6.9 billion—roughly 26% of total equity investments—Bengaluru, along with Delhi-NCR, attracted a combined USD 16.5 billion, making up about 62% of overall investments nationwide. The city's performance reflects its strong fundamentals: a concentration of investment-grade assets, sound infrastructure, a skilled workforce, and sustained demand across residential, commercial, and technology-driven and development sites attracted the highest share of equity inflows, accounting for 44% of total investments, followed by built-up office assets at 32%. This trend indicates growing investor appetite for long-term capital deployment in cities like Bengaluru, which offer scalable, high-quality development potential. Between 2022 and 2024, India received a total of USD 26.7 billion in real estate equity, underscoring Bengaluru's credibility as a stable and high-growth report also points to Bengaluru's emerging role in the rise of alternate asset classes such as data centres, healthcare facilities, student housing, and co-living spaces. In 2024 alone, around 220 acres of land were acquired for data centre development across India, with Bengaluru leading due to its robust IT infrastructure and supportive government macroeconomic indicators are expected to further support the sector. The Reserve Bank of India's shift in policy stance from 'neutral' to 'accommodative', along with two repo rate cuts in 2025, is expected to lower borrowing costs. This is likely to boost both developer activity and end-user affordability factors especially relevant to Bengaluru's expanding housing and commercial office continue to view the city's residential and office segments as core opportunities. Bengaluru's residential market is seeing high project launches, increased homeownership, and rising disposable incomes. Office space leasing remains strong, driven by IT, BFSI, engineering, and life sciences firms, with Grade A assets maintaining high occupancy sustainability is also gaining prominence, with nearly 20% of investors prioritising green-certified developments. Bengaluru's early adoption of sustainability measures positions it well to attract ESG-focused tier-II cities garnered around USD 3 billion in investments approximately 10% of total inflows Bengaluru retains its edge, offering a blend of scale, infrastructure, and regulatory stability that newer markets are still building towards.
Hans India
24-04-2025
- Business
- Hans India
Delhi-NCR, Hyderabad, Bengaluru Lead I&L Leasing in Q1 2025
Leasing volume in India's industrial and logistics sector increased by around 40 per cent year-on-year in the first quarter of 2025, with total space take-up across eight major markets reaching 12.1 million square feet, CBRE South Asia Pvt. Ltd. reported Thursday. The CBRE India Market Monitor Q1 2025 study tracked leasing in Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Kolkata and Ahmedabad. Combined activity in these hubs rose from 8.7 million square feet in Q1 2024 to 12.1 million in Q1 2025, reflecting wider uptake of warehouse and distribution space. Delhi-NCR remained the single largest market, contributing 3.7 million square feet, or roughly 30 per cent of total leasing. Hyderabad followed with 1.9 million square feet (about 15 per cent), and Bengaluru accounted for 1.7 million square feet (around 14 per cent). Together, the three markets represented nearly 60 per cent of all space absorbed. Pune and Chennai recorded 1.6 million square feet (13 per cent) and 1.0 million square feet (8 per cent), respectively. Kolkata accounted for 0.9 million square feet, while Mumbai and Ahmedabad each registered 0.7 million square feet. Third-party logistics operators led demand in Q1, securing 31 per cent of total leasing. E-commerce firms held 28 per cent of space commitments and saw leasing volume more than triple compared with the same quarter last year. Manufacturing and engineering companies took 17 per cent of new leases. Automotive and ancillary businesses accounted for 8 per cent, and fast-moving consumer goods occupiers represented 5 per cent of quarterly leasing. Landlords added 12.4 million square feet of new supply between January and March, a 57 per cent jump from the year-earlier period. Institutional investor-backed developers were responsible for the bulk of completions. Mumbai, Bengaluru and Chennai combined to contribute 69 per cent of new inventory, reinforcing their positions as core industrial and logistics nodes. Anshuman Magazine, Chairman and Chief Executive Officer for India, South-East Asia, Middle East and Africa at CBRE, said leasing and supply volumes in the sector continue to rise as occupiers increase commitments for distribution centres and warehouses. He noted that demand from both logistics service providers and online retailers has underpinned quarterly growth. Ram Chandnani, Managing Director of Advisory and Transaction Services for India at CBRE, said the first quarter's leasing pattern confirms stable market fundamentals and points to sustained investment from both domestic and global occupiers. He added that interest from corporate users in Europe, the Middle East and North America underscores India's evolving role in regional supply chains. Looking ahead, CBRE expects leasing momentum to extend through 2025. The firm projects ongoing expansion of e-commerce space requirements, particularly for rapid-delivery operations, and continued dominance by third-party logistics companies. The report also anticipates diversification of occupier profiles, with sectors such as manufacturing, fast-moving consumer goods and automotive showing incremental leasing interest. Supply additions by institutional investors are likely to increase as developers respond to occupier requirements for centres that meet governance, design and technology benchmarks. CBRE forecasts that completed projects with built-to-suit components and multi-user facilities will command a larger share of total new supply in coming quarters. The Q1 2025 figures mark a continuation of the sector's upward trajectory since the second half of 2023, driven by policy incentives, infrastructure upgrades and rising penetration of online retail platforms. As new warehousing capacity becomes operational, market participants are monitoring rental trends and vacancy levels for indications of balance between supply and demand. Despite rising interest rates in financial markets, industrial and logistics rents in most major cities have held steady. CBRE's analysis shows that occupier rents in Delhi-NCR, Bengaluru and Hyderabad moved within a narrow band in the quarter, suggesting that leasing growth has kept pace with new deliveries. With distribution networks expanding and companies sharpening inventory strategies, the report concludes that demand for high-specification space will maintain leasing volumes at elevated levels. CBRE recommends that investors and occupiers continue tracking sector metrics, including take-up by category, supply completions and rental movement, to align decisions with market shifts.
Time of India
23-04-2025
- Business
- Time of India
Industrial and logistics supply grows by 57% YoY in Q1 2025
India's Industrial & Logistics (I&L) sector recorded a robust 57% year-on-year growth in new supply during January–March 2025, reaching 12.4 million sq. ft., according to the latest India Market Monitor Q1 2025 – Industrial & Logistics report by CBRE South Asia Pvt. Ltd. This significant supply addition was driven primarily by institutional investor-backed developers, who are actively expanding their footprint to meet strong occupier demand with high-quality, Grade A warehousing assets. Mumbai, Bengaluru, and Chennai accounted for nearly 69% of the new supply, reinforcing their positions as key I&L development hubs. The fresh stock was strategically aligned with demand from e-commerce, third-party logistics (3PL), and manufacturing occupiers, who continue to seek large, modern spaces in well-connected corridors. Developers supported by both domestic and global institutional capital are increasingly focusing on Tier I and select Tier II cities, where improving infrastructure and policy support are enabling faster project delivery and long-term scalability. The surge in supply coincided with strong leasing activity, which grew ~40% Y-o-Y to reach 12.1 million sq. ft. across India's top eight cities. Delhi-NCR, Hyderabad, and Bengaluru together accounted for approximately 60% of total leasing volumes, with Delhi-NCR leading at 3.7 million sq. ft., followed by Hyderabad at 1.9 million sq. ft. and Bengaluru at 1.7 million sq. ft. This leasing momentum was powered by large-block commitments from key sectors such as 3PL, e-commerce, engineering and manufacturing (E&M), auto and ancillary, and FMCG. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo 3PL players dominated leasing with a 31% share, led by multi-location transactions, while e-commerce players accounted for 28%—a more than threefold increase compared to the previous year—driven by major expansion and the rapid development of fulfilment centers. Engineering and manufacturing contributed 17%, while auto and ancillary stood at 8% and FMCG at 5%. Commenting on the sector's performance, Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, 'India's Industrial and Logistics sector continues to exhibit robust and sustained growth, underpinned by strong demand from 3PL players and e-commerce platforms. The first quarter of 2025 has recorded healthy leasing and supply volumes. As India continues to diversify its industrial base and improve infrastructure, we expect sustained demand from a wider spectrum of occupiers, positioning the country as a regional powerhouse in the global supply chain.' Live Events Ram Chandnani, Managing Director, Advisory & Transaction Services, India, CBRE, added, 'The leasing activity in Q1 2025 reaffirms the strong fundamentals of India's Industrial and Logistics market. With growth in leasing activity and active participation from both domestic and international occupiers, we are seeing a clear uptick in investments and long-term commitments. This momentum is further supported by rising interest from global corporations—particularly from the EMEA and American regions—underscoring India's strategic importance as a fast-emerging logistics and distribution hub in the Asia-Pacific region.' Looking ahead, the outlook for the I&L sector remains optimistic. Leasing momentum is expected to continue through 2025, supported by the continued dominance of 3PL and e-commerce occupiers, expansion from sectors such as E&M, FMCG, and auto, and a steady pipeline of institutional-grade supply. Developers are likely to continue scaling up their presence, delivering future-ready assets that accommodate automation, ESG compliance, and operational flexibility. As India cements its position in the global supply chain, the availability and delivery of high-quality, scalable warehousing will play a pivotal role in shaping the next phase of growth in the country's industrial real estate landscape.
