Retrofitting can unlock ₹1.2–1.6 lakh crore in asset value across Indian offices: CBRE
CBRE
South Asia.
The report estimates that such upgrades could drive 25–40% asset value enhancement in key commercial micro-markets.
To realise this potential, the total investment required is estimated between ₹30,000–40,000 crore, depending on the scale and scope of enhancements. This includes structural upgrades, façade modernisation, HVAC optimisation, ESG compliance, and the addition of employee-centric amenities. The report adds that well-executed retrofits can offer a 3–5 year payback period, driven by improved occupancy, better lease terms, and enhanced tenant retention
CBRE estimates that close to 160–180 million sq ft of India's office stock is over a decade old and likely in need of refurbishment or complete repositioning. 'With workplace preferences changing rapidly and tenants now demanding enhanced sustainability, wellness, and smart technology integration, retrofitting offers a high-return solution for landlords and investors,' said
Abhinav Joshi
, head of research – CBRE India, MENA & SE Asia.
The report notes that capital value enhancement post-retrofit could reach 40% in select micro-markets, with rental appreciation potential ranging between 15–35%, depending on location, scope, and quality of upgrades
Bengaluru, NCR, and Mumbai lead retrofit demand
According to CBRE, over 160–180 million sq ft of India's office inventory is more than a decade old and in need of varying levels of upgradation. Of this, more than 70% is concentrated in three major metros:
Bengaluru: 35–40 million sq ft
Delhi-NCR
: 30–35 million sq ft
Mumbai (MMR): 25–30 million sq ft
These cities alone represent a retrofit investment opportunity of ₹20,000–25,000 crore, and could potentially unlock over ₹1 lakh crore in capital value post-upgradation. Bengaluru's Outer Ring Road, Whitefield, and CBD/SBD areas lead the demand due to the presence of early-generation IT parks and SEZs.
In NCR, the focus is on Gurugram's Udyog Vihar, Golf Course Extension, and Noida's Sector 62/63 belt, where many buildings now face occupancy pressure due to lack of ESG compliance and modern infrastructure. Mumbai's BKC, Andheri East, and Lower Parel also feature prominently in the list of zones with high retrofit potential.
Other cities like Hyderabad, Pune, and Chennai are expected to see 10–15 million sq ft of ageing stock each entering the retrofit cycle within the next 2–3 years.
'The retrofitting trend aligns with the maturing of India's office sector, where older assets are under increasing pressure from Grade A+ supply and ESG-compliant buildings,' said Sumit Arora, head – National Operations & Workplace Strategy, CBRE Consulting.
Citing recent workplace experience surveys, CBRE notes that 81% of employees expressed a preference for upgraded workspaces offering better lighting, air quality, acoustic comfort, and breakout zones. More than 60% of respondents also stated that high-quality work environments have a direct impact on productivity and talent retention.
The report highlights a set of financial and operational value drivers propelling the retrofitting trend in India's office market. Retrofitted buildings in high-demand micro-markets can witness capital appreciation of up to 40%, while commanding 15–35% higher lease rentals due to improved design, efficiency, and tenant experience.
Additionally, energy-efficient upgrades such as HVAC optimization, LED lighting, and advanced water systems can reduce operating costs by 20–30% over time. Beyond financial returns, retrofits also help developers and asset owners align with ESG benchmarks, achieve green certifications, and enhance the long-term sustainability profile of their portfolios.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
21 hours ago
- Economic Times
How Bond duration impacts return in a falling rate regime, Gautam Kaul explains
Kshitij Anand: For investors, especially retail ones, could you give them a small masterclass on how rate cuts affect investor demand for different tenures of corporate bonds? I'm sure a lot of new investors—or the Gen Z ones, you could say—might not relate much to how bonds work. There's often more fear than accurate knowledge. So, if you could simplify this equation for them, that would be really great. Gautam Kaul: Live Events Kshitij Anand: Apart from that, looking at the industry more broadly—do you see the Indian bond market emerging as a relatively safe haven amid the global debt uncertainty? Gautam Kaul: Kshitij Anand: Also, let me get your perspective on ESG — one of the key themes that has emerged in both equity and bond markets. Are investors assigning a valuation premium to companies issuing ESG-compliant bonds, and what is driving the growing popularity of these instruments? Gautam Kaul: (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel As interest rates begin to soften, fixed income investors are increasingly revisiting the role of bond duration in shaping portfolio an insightful conversation, Gautam Kaul, Senior Fund Manager – Fixed Income at Bandhan AMC , breaks down how duration plays a critical role in enhancing returns during a falling rate the mechanics of price sensitivity to strategy shifts for various investor profiles, Kaul offers a clear roadmap for navigating bond markets in a changing rate cycle. Edited Excerpts –When you're investing in any fixed income instrument, there are two broad risks that you are exposed to—duration and rating. Rating refers to the credit risk associated with the bond. Duration refers to the weighted average maturity of all the bond's cash simplify, the sensitivity of a bond's price to interest rate movement is measured by its duration. For example, if a bond has a duration of one, then for a 1% change in yields, the price of the bond will rise or fall by 1%.Similarly, if the bond has a duration of 10, a 1% change in interest rates would cause a 10% change in the bond price—plus or minus. There's a bit of nuance to this, but that's the basic is this important? Because when interest rates rise or fall, the mark-to-market (MTM) impact on your portfolio is governed by the bond's duration. Bond returns come from two components: the coupon (or carry) and the MTM impact. Unless you are holding a bond till maturity, your holding period return consists of the coupon you earn—typically the bulk of the return and accrued daily—and any MTM gain or taking our earlier example: if your bond has a duration of one and interest rates drop by 1%, you will gain 1% from the MTM, in addition to your regular coupon. If you sell at that point, that MTM gain is we talk to investors about fixed income, we encourage them to look at two risks: duration risk, which drives the volatility of a bond fund, and credit risk. These are the key parameters you should evaluate before choosing which funds to invest has helped here through its categorization framework. For example, liquid funds cannot invest in instruments with maturities beyond 90 days; low-duration funds are capped at one year; short-term funds have defined duration bands. So, investors get a clear idea of the maximum and minimum duration risk a fund may example, short-term funds must maintain a Macaulay duration between one and three. So, in that case, for a 1% change in interest rates, your MTM impact could range from 1% to 3%.Earlier, it was relatively easy to assess the duration risk of a portfolio but much harder to assess credit risk. You had to dig into fact sheets and manually check the ratings of every holding. But a few years ago, SEBI introduced the Potential Risk Class (PRC) matrix—a simple yet powerful requires every fixed income fund to define the maximum level of duration risk and credit risk it can example, if a fund declares itself as PRC "A" on credit risk, that means the fund's average portfolio rating will be at least AAA at all times. If it's PRC "B," then the average rating must be at least gives the investor a clear sense of the maximum credit and duration risks associated with the fund—two of the most critical parameters when investing in fixed if you do nothing else, just look at the PRC classification. It gives you a reliable, forward-looking measure of the fund's risk yes, absolutely. In fact, I'd say India is, if not unique, certainly one of the few economies that offers both macroeconomic stability and high give some context—long-term fixed income investors are primarily trying to preserve the purchasing power of their money. That means earning returns that beat inflation, which is the holy grail. Achieving that consistently requires macro stability: low fiscal deficit, low and stable inflation, and ideally a manageable current account ticks all those boxes. Our current account deficit is low and stable. We're less exposed to tariffs compared to economies like Southeast Asia or China, which rely heavily on manufacturing exports. Our exports are predominantly services-based, which are more insulated from global tariff is also well under control—lower than the RBI's forecast and well below its upper tolerance level. The government has been fiscally responsible, reducing the fiscal deficit year after year (except during the COVID period, where even then, spending was targeted and controlled). They've also committed to bringing down the debt-to-GDP ratio over are exactly the metrics that any global fixed income allocator looks at. As a result, global investors have already started viewing India as a fixed income haven, even before our inclusion in the JP Morgan bond consider this example: If you compare two countries—one where the fiscal deficit is rising from 5.5% to 6.5-7%, and another where it's falling from 5.5% to 4.5%—you'd assume the latter is a developed market and the former an emerging one. But in India's case, it's the opposite. That speaks volumes about our policy all of this hasn't happened by accident—it's the result of deliberate, disciplined policy decisions. For a global fixed income allocator, this signals a stable environment with attractive key point: foreign ownership of Indian government bonds is still quite low—even post JP Morgan inclusion, it's under 3%. For comparison, many other emerging markets have foreign ownership ranging between 5-15%.So yes, India offers an attractive macro landscape, a deep and growing market, and plenty of headroom for increased foreign participation. I believe we're well-positioned to become a preferred destination for global fixed income as a movement — and the market attached to it — has gained significant traction and momentum in the West. In India, we are still at a very early stage of the entire ESG investing platform. Even within our landscape, equity is where we are seeing more traction compared to fixed said, we have seen some private corporates issuing ESG bonds. In fact, the Government of India also issues green bonds. So, there is a concerted effort, and of course, some demand for these instruments from specific a fixed income perspective, the market is still nascent and developing. Most of the demand for ESG bonds currently comes from foreign investors rather than domestic ones.I believe that as awareness grows, we could see ESG-dedicated funds in India as well — either from Indian or foreign investors — which could further drive investment in ESG bonds. There is great potential here, but we're still in the early the market paying a significant premium for ESG bonds? Selectively, yes. But it still needs to evolve into a more widespread and common instance, the government's borrowing cost for green bonds versus regular bonds isn't very different — perhaps just a 5-basis point green bonds were first introduced, our sense was that this premium — or "greenium," as it's called — could be much higher. That might still be the case in the future, given the early stage of the INR bond market.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Business Standard
2 days ago
- Business Standard
India's Billionaire Belt - Where Luxury Housing Demand is Soaring in 2025
NewsVoir Delhi NCR [India], July 26: The term 'Billionaire Belt' captures more than just a cluster of wealthy neighborhoods--it reflects a new geography of aspiration taking shape in India. Stretching across parts of Delhi-NCR, this belt is defined by a rare convergence where rising concentrations of ultra-rich individuals, a maturing luxury real estate market, and world-class infrastructure that supports global lifestyles can be observed. Delhi-NCR recorded a 209.4% spike in luxury home sales in the last one year. Nearly 3,960 homes priced at ₹6 crore and above were sold in just the first half of 2025, up over three times from 1,280 units last year, according to a new CBRE-ASSOCHAM report. Over half of the country's luxury transactions now flow through this region--an unmistakable sign of where wealth is choosing to settle. Gurugram and Noida lead this wave, with high-value launches dotting their micro-markets. What's driving this surge is the union of factors like rising disposable incomes of buyers along with the growing desire for larger and well-located homes owing to post-pandemic lifestyle upgrades. On top of that, the surge in HNIs and NRIs across India, particularly in and around the capital, is quietly but powerfully reshaping the contours of luxury housing. Looking at the bold yet considered choices of these buyers, developers are focusing more on transparency, experience, and high-end finishes, boosting buyer trust. Complementing this, RBI's pause on rate hikes has made home loans relatively more attractive, even in the luxury segment. Mohit Gawri, Vice President-Sales, RISE Infraventures says, "Luxury housing demand is being shaped by a new psychology of permanence. Buyers aren't flipping properties--they're curating generational homes. The NCR's billionaire belt reflects this shift with high-end homes getting booked early. There's also strong NRI traction and domestic movement from metro cores to planned peripheries, showing that buyers are investing in homes that feel like sanctuaries and signal permanence." Salil Kumar, Director, Marketing and Business Management, CRC Group says, "A home is more than a personal landmark-- it is a reflection of success. In the luxury segment, there is virtually no upper ceiling; from sprawling bungalows in posh locations like South Delhi to sky villas in Gurugram, high-net-worth individuals seek homes that match their ambition. But with supply tightening in legacy zones, buyers are exploring new luxury corridors across Noida-Greater Noida. These locations are the new epicentres of luxury demand, and the momentum here is only set to grow. At CRC, we've been mindful of this lifestyle shift, catering to buyers who view their home as both a retreat and a lasting legacy." Besides, tier-II cities or second-home destinations like Sonipat, Kundli, and Chandigarh are witnessing a significant rise in demand within the luxury real estate segment. Buyers are increasingly drawn to locations that offer cleaner air, lush surroundings, and a peaceful lifestyle, which is not possible in fast-paced metro cities. Gurpal Singh Chawla, Managing Director, TREVOC Group, says, "Luxury homebuyers prioritize space, privacy, and long-term value over just centrality. However, post-pandemic, they are more inclined towards locations that offer scenic value, rental potential, and a quality lifestyle. Against this backdrop, tier 2 locations like the Sonipat-Kundli belt are witnessing a quiet luxury surge, going beyond the title of Delhi spillover. Business owners, professionals, and legacy families from the capital are investing here for larger land parcels and less congestion, reflecting an appetite for locations with urban access and suburban tranquillity." Umang Jindal, CEO, Homeland Group, says, "Tier-2 cities are the next luxury frontier, especially among NRIs, industrialists, and second-home seekers. This shift is putting cities like Chandigarh at the forefront of high-end housing demand. With its planned infrastructure, cleaner environment, and cultural refinement, the region is a haven for expansive homes, wellness-centric communities, and a sense of balance. Thus, demand here isn't incidental--it's accelerating, making tier 2 locations India's most sought-after luxury housing destinations." Moreover, on the sales and supply front, during April-June quarter housing sales in Delhi-NCR rose by 16% to more than 11,700 units on high demand for luxury homes and new launches, according to PropEquity. New supply was estimated at 13,823 units in the second quarter of this year, up 37% from 10,084 units in the year-ago period. Sanjay Sharma, Director, SKA, says, "Gurugram continues to lead NCR's luxury housing evolution, driven by a clientele that values brand legacy, prime addresses, and architectural statement. Branded residences, especially along corridors like the Dwarka Expressway, are being viewed as generational assets. The demand here is as much emotional as it is financial, turning Gurugram's billionaire belt a proven destination for enduring value." Therefore, as India's wealth landscape continues to expand, the term Billionaire Belt is evolving from a metaphor into a tangible force in the country's real estate story. This belt is no longer just about prime locations--it's about ecosystems that support legacy living, global connectivity, and lifestyle integration at the highest level.
Fashion Value Chain
2 days ago
- Fashion Value Chain
Trident Reports Q1FY26 Profit Growth and Debt Reduction
Trident Limited, a leading diversified textile and paper manufacturer, has released its consolidated financial results for the first quarter of FY26, reporting resilient performance across all verticals. The company achieved consolidated revenue of ₹1,727 crore for Q1FY26. EBITDA rose by 18.12% QoQ to ₹312 crore, with net profit increasing by 4.89% QoQ and a significant 89.39% YoY to ₹140 crore. Free cash flow stood at ₹234 crore for the quarter, reinforcing the company's liquidity position. The company's net debt stood at ₹879 crore as of June 30, 2025, a decline of ₹31 crore from the previous quarter despite a dividend payout of ₹254 crore in May. This brought the annualized Net Debt/EBITDA ratio down to 0.71 from 0.95 QoQ, and maintained a healthy Debt-Equity ratio of 0.35. Key Segmental Highlights: Yarn : ₹902 crore in revenue Home Textiles : ₹948 crore in revenue Paper & Chemicals: ₹260 crore in revenue Commenting on the results, Mr. Deepak Nanda, Managing Director, stated: 'Despite macroeconomic challenges, we've delivered solid profitability and further strengthened our balance sheet. Our focus remains on sustainable growth, innovation, and expanding volumes in value-added products, while leveraging favorable global trade developments including the India–UK FTA and U.S. tariff adjustments.' The company reported an EBITDA margin of 18.06%, up 404 basis points QoQ, with improved profitability metrics across the board. Trident continues to prioritize ESG-led growth and operational excellence across its manufacturing hubs in Punjab and Madhya Pradesh. Financial Snapshot – Q1FY26 vs Q4FY25 vs Q1FY25
