Page 32 - CIJ Oct 2024 Digital Edition

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overseas expanding existing Around 80% of the Launches and Sales
GCC facilities and setting up new
operations, resulting in 48% more GCCs in India are Trends
space taken up during the current currently servicing The residential sector witnessed
period. With business sentiments international clients a staggering 209% year-on-year
improving and the uncertainties increase in PE investments,
steadily reducing, occupiers are Private equity (PE) investments reaching USD 854 million.
more inclined to make longer term in Indian real estate reached Domestic investors played a crucial
commitments to the workplace by an impressive USD 3.0 billion, role, with Bengaluru and Mumbai
signing long-term leases. marking a 15% year-on-year emerging as top beneficiaries.
increase. The Indian economy’s Investments were diversified
End-use split of strong fundamentals have across under- construction and
transactions in H1 2023 contributed to sustained investor new developments, reflecting a
confidence in the Indian real estate
strong belief in the sector’s growth
and H1 2024 sector. This, coupled with a shift in potential. The office sector attracted
Global Capability Centres investor focus towards multi-city USD 579 million in H1 2024,
deals, has led to several significant
(GCCs) are offshore establishments investments in real estate. Notably, representing a 67% decline year-
that multinational corporations the top five PE transactions in the on-year. Despite this decline, the
set up to provide services to demand for Grade A office spaces
their parent entity. This is based first half of 2024 accounted for in prime locations remains robust.
on the leverage of global skills, a substantial 80% of the total PE Investors showed a clear preference
investments received during this
resources, and knowledge. These for ready assets, with Hyderabad,
entities are generally integrated period. Pune, and Bengaluru being key
into larger corporations and offer The Indian real estate market hubs for office investments.
various services like research experienced a surge in investments
and development, IT support, during H1 2024. This growth Office takes a backseat
outsourcing of business processes, was particularly evident in the as warehousing sector
engineering solutions, and other residential sector, driven by leads
related functions. GCCs are increased domestic participation.
projected to absorb 26 mn sq ft of Historically dominated by foreign Sustainability has also emerged
office space by 2027: Bengaluru investors, the market saw a as a critical consideration in CRE
with the highest IT/ITES GCCs and significant rise with domestic globally. There is a growing
Mumbai highest in the weighted investors now accounting for 20% emphasis on green buildings and
average rent for GCCs. of total investments in recent years. sustainable practices, driven by

Launches and Sales Trends

OCTOBER 2024•Clean India Journal
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