Skip to main content Skip to footer

Colliers India Flash Revitalizing outdated buildings- A requisite to avoid redundancy

1536 Revitalizing outdated buildings

Retrofitting outdated office stock holds investment potential of INR 9,000 crore -Scope to upgrade 100 mn sq ft of office stock across top 6 cities

Gurugram, 23 September 2021 – Landlords and developers are missing investment opportunities and have a scope to upgrade around 100 million sq ft of office space. The retrofitting of these assets has Rs 9,000crore or USD 1.2 billion worth of unrealised value in the top six cities as per Colliers’ latest report, Revitalizing outdated buildings: A requisite

As per the report, the upgradation of buildings will make them more investible, which investors and developers can then bundle into a REIT. Currently, investors are betting on under-construction buildings due to a lack of readily investible assets.

“This is an opportune time for landlords to upgrade their properties. Many occupiers are considering moving from old-generation to new-generation buildings and, more than ever before, looking at aspects like HVAC upgrades, improved indoor air quality standards and smart features. The focus is also on modern amenities which improve operational efficiency and enable collaboration. Occupiers are also looking at a reduced CAPEX from their side. In this context, retrofitting buildings will revive demand by generating a renewed sense of interest among occupiers. While up-gradation can involve increased costs, landlords can see the rental appreciation of up to 20%,” said Ramesh Nair, Chief Executive Officer | India & Managing Director, Market Development, at Colliers India.

The report mentioned that Occupiers’ needs, and preferences are changing. This makes it imperative for outdated office buildings to be upgraded. Occupiers are increasingly exploring smart buildings with modern amenities that improve operational efficiency and enable collaboration. Moreover, COVID-19 has brought the health and safety of employees to the centre stage. As employees gradually return to the workplace, workspaces will need to meet the expectations of the new normal.

According to Colliers, CBDs of the top Indian cities such as Nariman Point in Mumbai, Connaught Place in Delhi, and MG Road in Bengaluru are iconic. They have played an enormous role in the growth of these cities. However, about 60% of the total CBD stock of the top six towns require upgradation. Tapping into this potential will be a good investment opportunity for developers and investors.

Bengaluru, Delhi-NCR and Mumbai together account for about 75% of the total stock ready for upgradation. Mumbai has the highest potential, with 28 mn sq ft of obsolete inventory. In the NCR, Delhi leads for upgradation in the CBD, Nehru Place and Okhla micro-markets where up to 49% of the stock is outdated.

“Energy retrofitting, technology integration and design are some vital elements for retrofitting. Tech-enabled air distribution systems, innovative glass technology, double glazing to cut energy requirements are some essential aspects that landlords can look into while retrofitting. Well-being focused design elements like increased natural lighting and ventilation, and occupiers will increasingly prefer integrated outdoor spaces, says Argenio Antao, Chief Operating Officer, India

The report mentioned, upgrading these buildings with modern amenities, designs, and building technology will not only attract massive investment opportunities but also command higher rentals and global companies. Occupiers will also be inclined towards upgraded buildings further led by the prominence of location, robust public transport, and low new supply in these markets.

Media Contact:
Sukanya Dasgupta
Director & Head, Marketing & Communications| India
Sukanya.dasgupta@colliers.com
+91 9811867682

Riddhi Vira
Manager, Public Relations
riddhi.vira@colliers.com
+91 9619776362

About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers or LinkedIn.

 

Related Experts

Ramesh Nair

Chief Executive Officer | India

Managing Director, Market Development | Asia

Mumbai (Regional Office)

Ramesh has over 24 years of experience in consulting across top-tier International Property Consultants (IPCs). As the Chief Executive Officer (CEO), India & Managing Director, Market Development, Asia, Ramesh drives Colliers India’s overall direction, strategy and growth. He is responsible for developing new client relationships, ensuring consistently superior levels of service delivery, and incubating new specializations. Having worked across diverse asset classes such as office, land, warehousing, industrial, retail, residential, data centers, and hotels advising leading domestic and multinational owners, investors, and occupiers, he aligns all business lines towards the firm’s strategy internally and externally.

He develops a country-wide growth plan, manages revenues, operating expenses, and profitability to drive results, identify trends, and take corrective action. Ramesh also creates our workforce to provide innovative future solutions and help clients define and deliver successful real estate projects of the highest quality. As Managing Director, Market Development, Asia, Ramesh uses his considerable industry experience to add value beyond the boundaries of India and develop services, expand client relationships, and attract other talented professionals to the company. Ramesh also serves on the Colliers Asia Executive Board.

Before joining Colliers, Ramesh served as the CEO & Country Head of JLL India, where he oversaw the work and outputs of ~12,000 professionals working across transactions, consulting, and annuity businesses. During his tenure, he successfully grew the company to record heights. Previously, Ramesh held other leadership positions at JLL, such as COO – India; MD - West India; South India Markets Head; India Head of Land; MD – Industrial; MD – Chennai; and MD – Hyderabad. Ramesh was one of the youngest International Directors and Country Heads of JLL globally. He has also been a member of the Asia Pacific Executive Board of JLL and the J8, a group of JLL’s eight most prominent countries in terms of profits and revenues globally amongst 80 countries.

Easily one of the most recognizable persons in real estate in India, Ramesh is one of the influential thought leaders in the Industry. He has written widely for prominent publications like the Times of India and Economic Times. He frequently appears on business shows across leading business channels such as CNBC.

A firm believer in the value of education, he has been a guest lecturer at prestigious institutes such as IIM Ahmedabad, IIM Kolkata, ISB Hyderabad, JBIMS, and SP Jain.

 

View expert

Argenio Antao

Chief Operating Officer | India

Bengaluru

Argenio Antao is an accomplished, passionate and highly motivated multi-disciplinary professional with over 30 years of extensive domestic and international experience, Having begun his career by taking leadership on projects and with his ability to find and implement solutions by thinking out-of-the- box, he has grown to take on greater challenges through developing innovative solutions and implementation strategies

As the Chief Operating Officer for Project Management Services, India, he has the overall responsibility for the technology, policies, systems and procedures in India. He also leads the Health and Safety as well as the Quality verticals across all projects.

His success in the workplace is a result of his strong passion and ability to lead and motivate the team to go beyond their perceived capabilities, through providing strategic vision and engaging them to always look at the bigger picture.

View expert

Indranil Basu

Managing Director

Project Management

Bengaluru

A seasoned Project Management professional, Indranil Basu has over 23 years of diverse real estate experience in delivering complex and acclaimed projects in India and abroad.  He provides leadership and strategic guidance on various aspects of development management across all asset classes. Indranil Basu is a highly meticulous, disciplined and passionate professional with strong emphasis on developing innovative business strategies.

As the Head of Southern India Project Management and design business, Indranil Basu leads a team of competent and seasoned professionals. He has a proven delivery track record and first-hand knowledge of the entire real estate business. His expertise lies in bringing maximum value for his Clients through innovation in product positioning and technology, and integrating international standards, thereby augmenting operational efficiency and user satisfaction.

Amongst other business management skills, one of his biggest strengths has been in curating extremely large scale and high value developments, and collaborating with Clients to enhance significantly the value of their property.
 

View expert

Taha Ansari

Managing Director

Project Management

Gurgaon

Taha Ansari is a highly experienced professional with close to three decades of experience in the Real Estate industry. 

Based in North India currently, he is leading and managing all aspects of the Project Management Service Line in North & East India including financial planning, profitability, client relationships and new business. 

Prior to starting at Colliers, he was a shareholding Director in Synergy and delivered projects in North India, Middle East and East Africa, across diverse asset classes.

His expertise is in Project Management and he has helped clients in delivering award-winning projects. He has delivered marquee projects, such as Select Citywalk (New Delhi), Medicity Hospital (Gurugram), Medanta Awadh (Lucknow), Pullman Hotel now “Le Meridien” (Gurugram), The Verandas – a Luxury Apartment, Vision City (Kigali) with many other projects across the region.

Prior to Synergy, he had worked for TCG Developments India, where he was leading a team of Engineers, Architects & Planners to lead projects, like Manor Hotel (Delhi), First India Place (Gurugram) and also offered support in driving growth.

Prior to TCG, he has experience of 8 years in KSA with Haji Al Shammari Construction and successfully delivered Residential Projects, Bungalows, Naval Officers Quarters and Naval Base Office.

View expert

Arnab Ghosh

Managing Director

Project Management

Bengaluru

Arnab Ghosh is a highly experienced real estate professional with over two decade of experience in the industry.  Arnab has extensive exposure in managing various aspects of project development including design, cost and construction management across various asset classes. Over the last decade he had led various teams to deliver more than 10 million sft of fitted out spaces for corporate clients across India.  The delivery models for these projects vary from classical project management to design and build and even warranted maximum price models.

As National Director and with his domain expertise he will collaborate and lead teams to provide project planning, coordination and quality control throughout the project lifecycle. He and his team are committed to deliver projects as per the Client needs and expectations.

He is responsible for the financial planning and profitability of the vertical and focuses on client relationship and new business engagements.

View expert