'Changing economic policies, ownership patterns to disrupt Indian office real estate'

Indian commercial office real estate is witnessing three major disruptions - changes in economic policies of major economies in the world, changing ownership patterns and the shift towards new commercial tenancy models such as co-working.

“Indian real estate is on the cusp of changes as these disruptions are likely to disrupt the way the commercial office market functions,” said Anshul Jain, Managing Director, India, Cushman & Wakefield.

Speaking after releasing the RICS and Cushman & Wakefield report titled ‘Commercial Office Real Estate: Positive Disruptions - Beacons of Change’, Jain said: “Overall, while there will be certain short-term headwinds emanating from global policies, India is relatively well-insulated.”

India is firmly on track to become an economic powerhouse with a strengthening GDP, better business environment and investor-friendly policies of the government, he added.

In his talk, Sachin Sandhir, Global Managing Director – Emerging Business, RICS said, “The biggest change in the sector will be brought about by its institutionalisation. As institutional investors gain ownership in commercial office assets, better corporate governance and best professional practices are slowly adopted by the commercial real estate sector.”

“Now, with REITs coming in, we will see increased demand for professional valuers of REIT assets. Also, professional management and valuation of properties in line with international standards will become the norm, steering the sector towards institutionalisation, especially once REITs are listed and the Real Estate Regulation Act is fully enforced,” he added.

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