ICICI Securities: Indian Commercial Real Estate - The Party Isn’t Over Yet
A man walks past a a taxi outside the Peninsula Corporate Park, developed by Peninsula Land Ltd., in the Lower Parel area of Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

ICICI Securities: Indian Commercial Real Estate - The Party Isn’t Over Yet

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 49% YoY decline in H1 CY20 net absorption at 10.5 msqft. 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 reported over 90% office rental collection between March-June 2020 and have seen pickup in leasing enquiries from June 2020 onwards with few large pre-Covid deals also being honoured.

Rents also continue to sustain at pre-Covid levels for large, institutional landlords. With a limited number of 8-10 large pan-India office developers capable of building quality assets, India continuing to have affordable rentals of under 1 USD/psf/month and an abundance of STEM talent, we remain bullish on office asset developers...

Click on the attachment to read the full report:

ICICI Securities Real_Estate India Commercial Update July 20.pdf

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