Delhi-NCR provides over 50 million sq ft REIT-worthy assets: Report

Delhi-NCR provides more than 50 mn sq ft REIT-worthy assets for around USD 6.5 bn value, according to a report by property consultant JLL.

Report said that Indian HNI follow similar investment trends in real estate as their global counterparts. However, the allocation towards equity has been higher than the global trend.

JLL’s ‘Private Wealth Group report ‘(re)Imagine Real Estate Investments’ said that Delhi NCR has around 23 mn sq ft of strata office market.

“The nature of investments within real estate has seen transition with higher allocation towards commercial office space assets and in publicly traded Real Estate Investment Trusts (REITs), helping investors reimagine deployment strategies,” said Manish Aggarwal, Regional MD North and East, JLL India.

As per the report, office space will recover fastest post pandemic due to robust fundamentals.

The national capital region offers limited leased strata space of 3.6 mn sq ft as most of it is owned by marquee developers. On the other hand, higher supply in peripheral zones offers 6.9 mn sq. ft. of ready to lease space. It offers the highest under-construction investment opportunity with 12 mn sq. ft.

“The country’s office sector has witnessed a robust growth over the last four years with the average annual net absorption crossing 30 mn sq ft leading to steady rentals and capital appreciation, until the onset of the pandemic,” said Samantak Das, Chief Economist and Head of Research, JLL India.

Delhi NCR, followed by Mumbai and Bengaluru, remained the top three cities in terms of warehousing space absorption in 2019 accounting for more than 20 mn sq ft of absorption.