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Nucleus Office Parks, the operating platform for Blackstone Group’s fully owned office property in India, has leased over 7.50 lakh commercial projects this year throughout its Pan-India portfolio, and these rentals are likely to increase as rental income increases. Annual revenue of approximately Rs 1,100 crore.
The operational platform has completed nearly 2.5 million square feet of new office space across its projects, including Lower Parel in Mumbai, Bangalore’s Outer Ring Road (ORR), and Gurgaon, bringing its total portfolio size to more than 22 million square feet.
Following the Covid19 pandemic, demand for commercial real estate is experiencing a sustainable rebound, with more than 15% of the company’s new supply already pre-committed.
“Our company is really a reflection of what’s going on in the economy… “We’re able to show good rental performance and reach these kinds of numbers simply because the economy is expanding and growth is driving the industry,” Quiser Parvez, CEO of Nucleus Office Parks, told ET exclusively.
Why Rental Payments That Are Higher Than The Supply In That Area
Because of mobility limitations and the opportunity to work from home provided by firms, the Indian commercial real estate industry has seen sluggish uptake since the pandemic.
As per the housing trends, this year will be a year of great recovery.” The Indian market has already registered a total consumption of 28 million square feet in the first half of the year 2022, a level that was accomplished during the entire year of 2021,” said Parvez, adding that a substantial portion of the contracts The new lease of Nucleus was in Mumbai real estate.
The operating platform includes 18 assets in the top five real estate markets in the country, including Mumbai, Bangalore, NCR, Chennai, and Ahmedabad.
Aside from this, the big US-based private equity firm controls more than 110 million square feet of commercial real estate in India through joint ventures and alliances with Indian developers.
This Is How Housing Rents In Mumbai Have Risen 2.6% In The Last Two Quarters
According to him, rents in key markets like as Mumbai are beginning to rise as demand remains high and supply remains tight due to large increases in construction costs influencing project completion.
Declining vacancy numbers in substantial markets have increased demand at the when limiting resource, which is initiating rents to rise. Housing rentals in Mumbai have increased 2.6% in the last two quarters.
Based on recruiting in the last 18-24 months, the five top IT businesses’ demand for office space is estimated to reach around 11.67 million square feet over the next two years once offices are fully operational. According to reports, the five top IT businesses in India employed approximately 260,000 new staff between April 2020 and September 2021.
According to Parvez, the IT sector’s steady acquisition of space continues, as both global and local enterprises have taken up large office space in recent months, signaling a robust return to leasing momentum.
How Indian Top Cities Experienced The Rental Growth In 2022
According to Knight Frank India data, the top eight cities had deals totalling 25.3 million square feet during the first half of 2022, while office completions totalled 24.1 million square feet during the same period.
Due to considerable demand, the office markets in Bangalore and Pune experienced the highest annual rental growth rates of 13% and 8%, respectively. Rents in Hyderabad, Mumbai, and the NCR increased moderately, while rents in Chennai, Ahmedabad, and Kolkata remained steady.
With almost $60 billion in assets under management across several industries, Blackstone has emerged as India’s most prominent institutional investor, ranking among the top ten business organisations in the country. Approximately $20 billion of total market value is accounted for by real estate, which is spread among 42 investments.
With a 135 million square foot office portfolio, over 10 million square feet of retail real estate, and 40 million square feet of logistics space, it is India’s largest owner of office and retail properties.