The Indian real estate industry is set to rock the major metropolitan cities with a $77 million investment. Real estate experts from Imperia Structures consider it a surprising change, considering the current market. The space of commercial properties ready for REIT investment shoots to 277 million square feet. It accounts for 44% of the total office space stock in India. These numbers were established by a real estate report issued by Cushman & Wakefield, an American commercial real estate services company.
The approximate cost of REIT eligible stock can be anywhere between $20 billion to $24 billion. Malls make up a good figure in this inclusion and it corresponds to 53 million square feet. Around 78% of them are completed and are running. The remaining 11 million square feet are scheduled to be completed by 2018.
Anshul Jain, the MD of Cushman and Wakefield India, says, “The commercial office market is likely to be on an upward trajectory steered by an improving economic outlook, as well as strong demand from certain sectors such as IT-BPM, BFSI, FMCG and pharmaceutical sectors going ahead.” He added, “In such a buoyant environment, the Indian market is well-placed to witness the listing of REITs, led by the government’s steps to ease policies for the investment vehicle.”
Imperia Structures has contributed to this movement on many levels. Their upcoming project, Onyx, located in Greater Noida West will create a buzz among the industries with its undivided office spaces and five-star business lounges. Imperia Structures has more than 15 completed projects that feature commercial properties over residential. Despite the explosive development, Mumbai is the flag bearer among the metropolitans with an REIT-eligible stock estimated to be around $6.1 billion to $7.5 billion. All we have to do now is wait for the real estate companies to do their magic.