The Indian real estate is on the cusp of change as the commercial office segment moves closer towards corporatization, according to RICS and Cushman & Wakefield report titled “Commercial Office Real Estate: Positive Disruptions- Beacons of Change.” Three major forces likely to disrupt the way commercial office market functions are – changes in economic policies of major economies in the world, changing ownership pattern and the shift towards new commercial tenancy models such as Co-working.
Anshul Jain, Managing Director, India, Cushman & Wakefield 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 strengthening GDP, better business environment and investor-friendly policies by the government.
According to Sachin Sandhir, Global Managing Director – Emerging Business, RICS, the biggest change in the sector will be brought about by its institutionalization. As institutional investors gain ownership in commercial office assets, better corporate governance and best professional practices are slowly being adopted by the commercial real estate sector. With REITs coming in, there will be an increased demand for professional valuers of REIT assets. Also, professional management and valuation of properties as per international standards will become the norm, steering the sector towards institutionalization, especially once REIT’s are listed and the Real Estate Regulation Act is fully enforced.