Commercial Real Estate to Remain Buoyant In 2021

Commercial real estate has emerged as a resilient segment in the past few years. According to a Colliers International report, the sector has witnessed an increase in leasing activity from 41.6 million square feet to 58.6 million square feet at a compound annual growt

BY Realty Plus
Published - Thursday, 21 Jan, 2021

Commercial Real Estate to Remain Buoyant In 2021

Commercial real estate has emerged as a resilient segment in the past few years. According to a Colliers International report, the sector has witnessed an increase in leasing activity from 41.6 million square feet to 58.6 million square feet at a compound annual growth rate (CAGR) of 12% over the past three years. The segment, thus, seems to have bright prospects of growth in 2021, owing to the expectations of economic stability. Another report by Colliers India has highlighted the commercial space absorption shot up to 58% for the quarter ended September 30th, 2020. This development is a testimony to the green shoots of recovery. With the Unlock phases followed by the festive season, commercial spaces are re-opening, albeit with safety measures and precautions. The government has also undertaken several measures such as slashing of the repo rate and reverse repo rate, granting of Emergency Credit Line Guarantee Scheme (ECLGS) to real estate, to revive customer sentiment. Commercial real estate has been on investors’ radar owing to assured and lucrative return potential. The growth of the IT/ITes sector and a spate of infrastructural developments have fueled the demand for commercial spaces. Developers expect the commercial segment to remain buoyant in 2021 owing to improvement in the ease of doing business among other conducive measures and the prospect of several firms relocating to India.