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About 300 mn sq ft of existing and upcoming commercial office buildings present an opportunity platter for Real Estate Due Diligence: Colliers

tddreport_assets747x50629092022

Office stock of about 180 mn sq ft in various stages of construction, to be completed in next 2-3 years.

 

India, 6th October 2022: Real Estate Due Diligence can capture a slice of the 300 mn sq ft pie of existing and upcoming commercial office buildings. The top 6 cities (Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, Pune) are seeing a strong pipeline of office buildings in the next 2-3 years, with about 180 mn sq ft of Grade A office stock in various stages of construction. At the same time, these top cities have Grade A office buildings of about 120 mn sq ft that can be refurbished. Developers and investors are seeking professional expertise to evaluate their upcoming projects and solutions for the upgradation of their existing ageing buildings, as per Colliers’ latest report “Technical Due Diligence: Risk-proofing Realty”.

The report, in detail, showcases how Due Diligence can help various stakeholders take precautions to safeguard their investments. It ensures that a property is developed as per prescribed norms at a time when there is increased focus on aspects related to sustainability (ESG) and health and wellness. The assessment further provides a pathway to reduce uncertainties and maximize the potential profitability of a project.

“Investments in real estate are growing, with increased traction from global investors. In the last five years, foreign capital flows in real estate jumped 3 times to USD24.0 bn, compared to the preceding five-year period. As the country is seeing a spurt in investments, there is an increased demand for state-of-the-art real estate projects which are technically and operationally compliant. The cost of conducting Due Diligence of a property is less than 0.3% of the project cost. As developers and investors venture into new geographies and asset classes, Due Diligence can help them risk-proof their prospective projects. The benefits will outweigh the costs incurred as it can save the stakeholder from substantial loss of money, time, and legal hassles”, 

says Jatin Shah, Managing Director, Technical Due Diligence, Colliers India.

For under-construction buildings, developers, investors and even occupiers can avail of Due Diligence services to get a better return on investments, timely risk mitigation and greater transparency during the transaction process.

The top six cities have about 120 mn sq ft of ageing Grade A stock, which is more than 15 years old. Due Diligence can help developers and landlords understand the scope of upgradation and achieve higher traction from occupiers, especially in the prime micro-markets of major cities.  Due Diligence experts can provide developers and investors with recommendations to overhaul their older properties. Upgrading old office buildings will help in gaining more traction from occupiers, increase the value of the building with increased building longevity.

“Post-Covid-19 developers and investors have become more cognizant about the efficiency of the project. It has become pivotal for them to understand the associated risks and upsides of any prospective project. Stakeholders can risk-proof their projects by making a small investment in Due Diligence and maximize their returns on investments.”

says Vimal Nadar, Senior Director, Research, Colliers India.

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Media Contact:            

Sukanya Dasgupta

Senior Director & Head, Marketing & Communications| Colliers India

Sukanya.dasgupta@colliers.com |+91 9811867682

 

Riddhi Vira

Manager, Public Relations | Colliers India

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 63 countries, our 17,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 27 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of 20% for shareholders. With annual revenues of $4.5 billion and $81 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people.


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Jatin Shah

Managing Director

Technical Due Diligence

Bengaluru

Jatin is a seasoned real estate professional with over 20 years of experience.  Jatin has managed entire aspect of project lifecycle development in multiple Projects executed for Investors, Occupiers and for Developers across India. Jatin has also been part of projects executed in Malaysia, Rwanda and Serbia (when in Synergy).

With domain expertise of design, procurement, cost and overall development he has collaborated and lead teams to provide value-add suggestions and inputs to Developer's.   Sharing his expertise, knowledge and leadership skills across multiple Projects, Clients have benefitted through the suggestions made by Jatin on cost, time and buildability. His capability as a real estate professional is common industry knowledge.

As Managing Director (Technical Due Diligence), Jatin is responsible for overall growth and developing long terms and short-term strategies for business to remain profitable and to ensure culture of Client satisfaction and expanding Client base to accelerate success. His key responsibility includes supporting Chairman, Colliers India on all technical aspects of India's business and effective collaboration across all service lines.

Jatin leads a highly expereiced and dedicated team to provide Due Diligence services for leading financial institutes to provide unbiased techno-commercial advice to investors, lenders and occupiers; for them to take informed decisions. Team under Jatin has completed technical due diligence of 300+ projects  across asset classes such as commercial, land, retail, residential, warehousing and logistics, and hotels.

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Vimal Nadar

Senior Director

Research

Mumbai (Corporate Office)

Vimal has a cumulative of about 14 years post qualification (as a Chartered Accountant) experience and recently joined Colliers as the Head of Research. He is responsible for leading and managing India Research operations. He will focus on thought leadership though timely and insightful content to support business growth while elevating the brand  value of the company. Prior to this, he led research thought leadership at JLL and Cushman & Wakefield. He began his professional career with Crisil; business research and consulting being his core areas of work. His areas of expertise include business assessment, demand-supply analysis, market entry strategy, strategic road mapping, etc in sectors such as Real estate, Cement, BFSI and other sub-sectors within the infrastructure domain. 

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