Strong Of­fice Re­alty Mar­ket

Sav­ills, a global real estate ser­vice provider has pres­ence through­out the Amer­i­cas, Europe, Asia Pa­cific, Africa and the Mid­dle East. Bhavin thakker, coun­try man­ager, ten­ant rep­re­sen­ta­tion, sav­ills in­dia, talks to Re­alty Plus about the com­mer­cial real-es

Realty Plus - - Editor-In-Chief Note -

Q What are Sav­ill’s ser­vice of­fer­ings and its set-up in In­dia?

Sav­ills plc is a global real-estate ser­vices provider listed on the Lon­don Stock Ex­change. It of­fers a broad range of spe­cial­ist ad­vi­sory, man­age­ment and trans­ac­tional ser­vices to clients all over the world. We have an in­ter­na­tional net­work of more than 700 of­fices and as­so­ci­ates through­out the Amer­i­cas, the UK, con­ti­nen­tal Europe, Asia Pa­cific, Africa and the Mid­dle East. In In­dia, the com­pany has made its pres­ence re­cently open­ing its first of­fice in Bengaluru fol­lowed by of­fices in Mum­bai and Delhi. We fol­low a hub and spoke model of oper­a­tions here and have ex­e­cuted as­sign­ments in cities like Pune, Hyderabad, Chennai and Kolkata. We cur­rently pro­vide two ser­vice lines in In­dia. One is ten­ant rep­re­sen­ta­tion or in sim­ple words of­fice bro­ker­age and the sec­ond is project man­age­ment. There is a strong oc­cu­pier’s de­mand in the of­fice space in cities like Mum­bai, Delhi- NCR, Hyderabad, Chennai and other prime cities. We rep­re­sent clients and look into their de­mands for space based on their cur­rent space needs, po­ten­tial growth pat­tern, skilled work­force re­quire­mentsand the peer busi­nesses lo­ca­tions among oth­ers. There is a sus­tained de­mand from IT, Pharma and fi­nan­cial sec­tor for of­fice space and we are presently fo­cussing only on of­fice space leas­ing and of­fice project man­age­ment ser­vices. In Hyderabad, Chennai, Bengaluru, Gur­gaon, Pune, ma­jor­ity of of­fice oc­cu­piers are tech­nol­ogy or­ga­ni­za­tions. Mum­bai be­ing a price sen­si­tive mar­ket does not have many tech­nol­ogy oc­cu­piers.

Q What are the of­fice oc­cu­pier’s re­quire­ments while leas­ing a com­mer­cial prop­erty?

They want a fair price for a qual­ity build­ing that can give good ef­fi­ciency ra­tio. Cor­po­rate gen­er­ally re­quire large floor plates, few floors or an en­tire build­ing. They also pre­fer to deal with a sin­gle land owner. Prop­erty lo­ca­tion, ac­cess, park­ing and ameni­ties present in the build­ing are other im­por­tant fac­tors. Most tech­nol­ogy firms would like to lease a cam­pus which is equipped with fa­cil­i­ties like a cafe­te­ria, ATM, gen­eral store etc. so that they can fo­cus on set­ting up their core busi­ness. In fact, as the com­pa­nies are get­ting ma­tured in their oper­a­tions and em­ployee re­la­tion­ship, they iden­tify what is im­por­tant for their staff and em­ploy­ees and ac­cord­ingly se­lect the of­fice premises.

Q What is cur­rent realestate in­vest­ment sce­nario in In­dia?

From an in­vest­ment stand point, there are a lot of op­por­tu­ni­ties right now es­pe­cially in the of­fice sec­tor which has seen ro­bust de­mand and we see that mo­men­tum con­tin­u­ing in near-term. In­ter­na­tional firms like Brooke­field, Black­stone and GIC Sin­ga­pore have in­vested in of­fice parks across Bengaluru, Hyderabad, Gur­gaon and other ma­jor cities. Re­tail sec­tor too has a bright po­ten­tial for at­tract­ing do­mes­tic and in­ter­na­tional in­vest­ments. REITS will fur­ther boost the real-estate in­vest­ments with com­mon man be­ing able to in­vest safely through REIT av­enues.

Q What is the fu­ture growth prospect for In­dian com­mer­cial real estate in In­dia?

Since 1991, In­dia has seen sus­tained growth in de­mand for com­mer­cial real-estate. The de­mand has been con­sis­tent in cities like Bengaluru and Gur­gaon The over­sup­ply of of­fice spa­ces in th­ese cities has never lasted be­yond one year and mostly there has been an un­der­sup­ply of Grade-aof­fice real-estate. In Hyderabad, Bengaluru and Gur­gaon there is a crunch in sup­ply as typ­i­cally build­ings take three years to com­plete and pro­vide sup­ply of fresh in­ven­to­ries. With in­creas­ing de­mand and lim­ited sup­ply, the prices would ei­ther re­main sta­ble or both cap­i­tal val­ues and in­cre­men­tal val­ues will go up.

Bhavin Thakker

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