homebusiness NewsDESH Bill will be a big boost for commercial real estate, REIT players: Colliers India
DESH Bill will be a big boost for commercial real estate, REIT players: Colliers India
SEZ space and the non-SEZ space does not have the price differential. SEZs are there in all four markets.
Development of Enterprises and Services Hub (DESH) bill will augur well for commercial real estate as well as the Real Estate Investment Trust (REIT) players, said Badal Yagnik, CEO, Colliers India.
“If DESH bill gets introduced, the way it is shaped up – definitely it is going to be a big boost to the commercial real estate players and for REIT players also,” he said.
Government last year, proposed the DESH bill with an aim to remove restrictions around business under Special Economic Zones (SEZs).
A lot of the commercial real estate players have been talking about the bill impacting occupancies.
Close to about 12% vacancies are there in REIT players, he said while decoding the provisions of the bill, its impact on the commercial real estate demand and vacancies.
25% of the 690 msf commercial real estate in India is in SEZ development.
SEZ space and the non-SEZ space does not have the price differential. SEZs are there in all four markets.
“We will definitely see a lot of occupiers preferring this,” he mentioned.
According to Yagnik, price appreciation post the bill is difficult, as it is a play of the market because of competing non-SEZ spaces in the market.
The overall India vacancies in SEZ and non-SEZ space is hovering at about 15-16%.
Peripheral markets have always been the outlier where the vacancy levels are above 20%. However, the post-COVID demand has come back, he stated.
“The sentiment, the demand is back and the issue is we don’t have quality real estate available in the core markets,” he mentioned.
For more details, watch the accompanying video
(Edited by : Priyanka Deshpande)
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