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ICICI Securities: Commercial Real Estate - Leasing To Pick Up In 2021

ICICI Securities: Commercial Real Estate - Leasing To Pick Up In CY21

A construction elevator travels up the exterior of an Indiabulls Real Estate Ltd. commercial building construction site in the Lower Parel area of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
A construction elevator travels up the exterior of an Indiabulls Real Estate Ltd. commercial building construction site in the Lower Parel area of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Along expected lines, the Indian Commercial Real Estate (CRE) office market has seen a 57% YoY decline in nine months of CY20 net absorption at 13.4 million square feet.

While the Covid-19 induced slowdown is expected to result in a 40-50% YoY contraction in demand and supply in CY20E, green shoots are gradually emerging.

Developers in our coverage universe have clocked over 90% office rental collection between March-September 2020 and have seen pickup in pre-leasing enquiries from June 2020.

Rents also continue to sustain at pre-Covid-19 levels for large, institutional landlords.

Click on the attachment to read the full report:

ICICI Securities Real Estate India Commercial Update Oct20.pdf

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