“As the country is seeing a spurt in investments, there is an increased demand for state-of-the-art real estate projects which are technically and operationally compliant. The benefits will outweigh the costs incurred as it can save the stakeholder from substantial loss of money, time, and legal hassles”, says Jatin Shah, Managing Director, Technical Due Diligence, Colliers India.
With commercial real estate seeing high investors interests and a high focus on ESG, office builders and investors are seeking professional expertise to evaluate their upcoming projects and solutions for the upgradation of their existing ageing buildings.
The top 6 cities (Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, Pune) are seeing a strong pipeline of office buildings in the next 2-3 years, with about 180 mn sq ft of Grade A office stock in various stages of construction. At the
same time, these top cities have Grade A office buildings of about 120 mn sq ft that can be refurbished and are over 15 years old. as per Colliers’ latest report.
“As the country is seeing a spurt in investments, there is an increased demand for state-of-the-art real estate projects which are technically and operationally compliant. The benefits will outweigh the costs incurred as it can save the stakeholder from substantial loss of money, time, and legal hassles”, says Jatin Shah, Managing Director, Technical Due Diligence, Colliers India.
The cost of conducting due diligence on a property is less than 0.3% of the project cost. As developers and investors venture into new geographies and asset classes it can help them risk-proof their prospective projects. Upgrading old office buildings will help in gaining more traction from occupiers, increasing the value of the building with increased building longevity.
“Refurbishing of old properties is the biggest possible value-add that the coworking industry can bring to the large
r real estate industry. We take big risks in converting a less desirable old property into a lively property which quite often the customers won’t even realize is an old property. Overall value for the building and of the neighborhood goes up due to execution of a successful turnaround,” said Shesh Rao Paplikar, co-founder of BHIVE Investech.
According to the report, real estate due diligence can capture a slice of the 300 mn sq ft pie of existing and upcoming commercial office buildings.
“Post-Covid-19 developers and investors have become more cognizant about the efficiency of the project. It has become pivotal for them to understand the associated risks and upsides of any prospective project. Stakeholders can risk-proof their projects by making a small investment and maximize their returns on investments.” says Vimal Nadar, Senior Director, Research, Colliers India.
Indian real estate has seen increased Investments in the commercial segment, with increased traction from global investors. In the last five years, foreign capital flows in real estate jumped 3 times to $24.0 bn, compared to the preceding five-year period.
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