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India Gazette
07-07-2025
- Business
- India Gazette
Institutional Investment in India's real state up 122% in Q2 2025 (QoQ): Vestian Report
New Delhi [India] July 7 (ANI): The Indian real estate sector received institutional investments of USD 1.80 billion in Q2 2025, an increase of 122 per cent from the previous quarter, from global giants like the U.S., Japan and Hong Kong according to a report by real estate consulting firm Vestian. The report, however, adds that despite investments more than doubling over the previous quarter, a yearly decline of 42 per cent is registered from the highest-ever investments recorded in any quarter. Amid global headwinds, investors from the U.S., Japan, and Hong Kong contributed around 89 per cent to the foreign investments recorded in Q2 2025. The majority of the investments from these countries were concentrated in commercial properties. Residential properties received only 11 per cent of the total investments, whereas the rest were diverted towards diversified properties. However, the share of these countries remained largely stable compared to the same period of the previous year. The report noted that, while foreign investments dominated investment activities in Q2 2025, its share declined from 71 per cent in Q2 2024 to 66 per cent in Q2 2025. In value terms, foreign investments dropped by 46 per cent to USD 1.19 billion from USD 2.21 billion. However, the share of co-investments almost doubled to 15 per cent from 8 per cent in the previous quarter, registering a hike of 2 per cent in value terms. The reports added that the shift of investment pattern from direct investments to co-investments by foreign investors underscores their cautious approach, driven by a desire to mitigate risks amidst geopolitical conflicts and macroeconomic instability. Shrinivas Rao, FRICS, CEO, Vestian, said, 'While overall inflows remained lower on an annual basis, the substantial quarterly growth reflects renewed investor confidence supported by robust macroeconomic fundamentals and strong inherent demand. This growth momentum is expected to continue as several rating agencies predict economic growth of more than 6% during FY 2026. Moreover, the recent reduction in the repo rate is expected to bolster positive sentiment by reducing borrowing costs and improving credit access for the sector.' Investment by domestic investors accounted for nearly 19 per cent of the total investments in Q2 2025, down from 21 per cent in the same period last year. In value terms, domestic investments stood at USD 336 million, about a 47 per cent annual decline and a 28 per cent decline compared to the previous quarter. The report says a decline in investments by domestic investors reflects cautious sentiment amid market uncertainty due to geopolitical conflicts and trade uncertainty. (ANI)
India Gazette
02-07-2025
- Business
- India Gazette
Global companies choose bigger offices in India, even as number of deals fall: Report
New Delhi [India], July 2 (ANI): In FY 2025, Global Capability Centres (GCCs) in India showed a clear preference for larger office spaces despite a slight decline in the number of overall transactions. The number of GCC transactions fell by 4 per cent to 305, but the total leased office area grew significantly according to a report by real estate services firm Vestian. Large transactions -- defined as deals above 1 lakh square feet -- increased by 44 per cent, rising from 15.8 million sq ft in FY 2024 to 22.8 million sq ft in FY 2025. This trend suggests that GCCs are focusing on long-term growth and consolidating their operations into larger spaces. India continues to be a preferred destination for global enterprises due to its cost advantages, skilled workforce, improving infrastructure, supportive government policies, and ease of doing business. In FY 2025, GCCs accounted for 42 per cent of the total office space absorbed across the country, up slightly from 41 per cent a year earlier. In terms of value, GCC absorption rose by 24 per cent year-on-year to reach 31.8 million sq ft. Fortune 500 companies played a key role in this growth, leasing 13.5 million sq ft -- which made up 43 per cent of the total area absorbed by GCCs. This marks a 25 per cent increase over the previous year and highlights India's growing importance as a hub for multinational companies establishing or expanding their global capability centers. Shrinivas Rao, FRICS, CEO, Vestian said, 'This share is expected to grow even further fueled by the expansion of large conglomerates from various industries such as IT-ITeS, BFSI, Healthcare & Lifesciences, Engineering & Manufacturing, and Consulting Services. India continues to offer a compelling value proposition through its skilled talent base, operational scalability, and robust ecosystem.' City-wise, Bengaluru remained the top destination for GCCs, accounting for 65 per cent of the city's total office absorption -- up from 55 per cent last year. Nearly half (47 per cent) of this space was taken by Fortune 500 companies, reaffirming Bengaluru's status as a global GCC hub. (ANI)
Hans India
01-05-2025
- Business
- Hans India
Hyderabad Tops Office Vacancy as Supply Outpaces Demand
Hyderabad has emerged as the city with the highest office space vacancy among India's top seven urban markets, driven by persistent supply outpacing demand since 2020. According to new research by Vestian, 59 million sq. ft. of new office stock has been completed in the city since 2020, while 48.5 million sq. ft. has been absorbed, resulting in a growing inventory of unoccupied space. By the end of Q1 2025, Hyderabad's vacant office inventory reached 28 million sq. ft., the highest among major metros. The vacancy rate is expected to climb further due to a steady flow of new developments in the pipeline, even as overall national construction activity saw a quarterly decline. Pan-India construction levels dropped 39% from the previous quarter and 12 per cent year-on-year, totaling 9.5 million sq. ft. in Q1 2025. This slowdown was partly due to minimal or no new supply additions in Hyderabad, Chennai, Mumbai, and Kolkata during the period. Despite reduced construction activity, office leasing across top Indian cities remained steady. The first quarter of 2025 saw a 34 per cent annual increase in space absorption, totaling 17.96 million sq. ft. Strong demand in western markets such as Mumbai and Pune fueled this growth, with their combined share rising from 24 per cent in Q1 2024 to 37 per cent in Q1 2025. Technology sector requirements, particularly from the IT-ITeS segment, continue to support demand. This sector accounted for 34 per cent of the national office absorption in Q1 2025, following a 36 per cent share in the prior quarter. The expanding influence of artificial intelligence has significantly impacted IT leasing patterns and expansion plans. Shrinivas Rao, FRICS, CEO of Vestian, noted, "The Indian office market has held its ground in early 2025, propelled by steady demand from sectors like GCCs, IT-ITeS, BFSI, and flexible office providers. While quarter-on-quarter absorption dipped, forward-looking demand signals remain positive." Q1 2025 Market Data Overview: - Bengaluru led the country with 4.08 million sq. ft. of office absorption, accounting for 23 per cent of the national total, despite a 3 per cent quarterly decline. - Mumbai followed with 3.99 million sq. ft., up 60 per cent year-on-year but down 11 per cent from the previous quarter. - Pune reported a 276 per cent annual increase, absorbing 2.66 million sq. ft., raising its share from 5 per cent to 15 per cent. - Chennai posted the steepest annual fall in absorption at 52 per cent, down to 1.6 million sq. ft. - NCR (Delhi region) saw 2.73 million sq. ft. of absorption, up 51 per cent year-on-year. - Kolkata had the lowest absolute absorption at 0.23 million sq. ft., but posted sharp increases of 44 per cent YoY and 289 per cent QoQ. New Completions Data: - Bengaluru led new completions with 3.5 million sq. ft., representing 37 per cent of the national total. - Pune followed with 2.9 million sq. ft., or 31 per cent of new supply. - NCR doubled its completions to 2.6 million sq. ft., a 44 per cent quarterly rise. Among occupiers, GCCs led leasing activity in Bengaluru with 39 per cent of the city's absorption. The sector saw a 39 per cent quarterly and 119 per cent yearly increase. Hyderabad, despite a 17 per cent rise in annual absorption, recorded negligible new completions in Q1 2025, pushing its vacancy level to a record high.
Scottish Sun
30-04-2025
- Business
- Scottish Sun
Aerial pics show world's biggest building site for 105mile sideways skyscraper ‘The Line'… but project faces big blow
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) PLANS for the world's longest sideways skyscraper have been dealt a "big blow" - while new images showed the audacious project's skeletal building site. Saudi Arabia's trillion-dollar megacity The Line has been plagued by scandal and setbacks - and now the NEOM project is facing another hitch. Sign up for Scottish Sun newsletter Sign up 9 An aerial view of The Line's progress shows the construction site Credit: NEOM 9 Concept image of The Line, Saudi Arabia's flagship NEOM megacity Credit: Giles Pendleton FRICS 9 New images showed the bare-bones construction site in the Saudi dessert. A concrete floor runs along the sand with little sight of activity - as the flagship city looks nowhere near complete. And now, NEOM's acting boss Aiman al-Mudaifer has said a "comprehensive review" of the ambitious build has been launched. The review for Saudi Prince Mohammed bin Salman's crown jewels scheme aims to look at the feasibility and priority of projects within the scheme. The acting leader has also faced simmering backlash over his management style and pressure to deliver results. One source close to the build said the main projects at NEOM were "in general going on", but added that some were being "reviewed in terms of their scope". The source added the review was "taking place in a n environment of limited resources", according to Financial Times. "Some things were done that need to be looked at again," they said. The Line - which was originally planned to house 1.5 million people but will now only accommodate 300,000 - covers desert and mountains by the Red Sea. Saudi Arabia unveils ultra-lux resort for BILLIONAIRES complete with private docks for world's biggest superyachts It is part of the NEOM gigaproject, alongside other megalomaniac structures such as Oxagon, Zardun and Trojena. The Saudi dream has struggled to meet deadlines and stay behind budget limits. The Prince's Vision 2030 programme aims to develop the kingdom with projects like these aiming to boost other sources of revenue. It has also drawn scepticism for its unrealistic-ambition - and criticism for its alleged human rights abuses. But another person close to the matter said the review was being conducted to 'decide what to double down on'. They said that it was related to "spending recalibration". Prince Mohamed serves as the de facto leader and chair of NEOM, which is owned by Saudi Arabia's Public Investment Fund worth £700billion. Mudaifer was appointed as NEOM's acting chief executive when the company was entering a "new phase of delivery". They said that his leadership would "ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project'. 9 Images showed the dessert site along which will host the megaproject Credit: NEOM 9 Progress of NEOM for the megaproject along the Red Sea Credit: NEOM 9 Part of the plan for design for The Line - Neom's flagship 170km-long city Credit: AFP 9 A digital mock-up one of the marinas planned for Neom Credit: AFP But the wildly ambitious megacity is hurtling towards financial meltdown - and has now faced this "big blow". Flying taxis, ski resorts in the desert, and the 105-mile (170-kilometre) mirrored metropolis The Line are currently looking like a monument to hubris, mismanagement, and economic overreach. It has a projected price tag of £6.9trillion. And it comes after Trump's tariffs - which could worsen its situation even more. Top 5 blunders plaguing NEOM project BY Juliana Cruz Lima, Foreign News Reporter Saudi Arabia's NEOM project, despite its ambitious vision, has been criticized for several major blunders that have raised concerns about its feasibility, ethics, and overall execution. Here are the top five major blunders associated with the project: Forced Displacement of Indigenous Communities: One of the most significant controversies surrounding NEOM is the forced displacement of the Huwaitat tribe. This indigenous community, which has lived in the area for centuries, was forcibly removed from their ancestral lands to make way for the development of the mega-city. The Saudi government's crackdown on those who resisted, including the killing of a tribal leader, Abdul Rahim al-Howeiti, has drawn widespread condemnation from human rights organisations. This blunder not only sparked international outrage but also tainted NEOM's image as a forward-thinking, humane project. Environmental Impact and Sustainability Concerns: NEOM has been marketed as an environmentally sustainable city, but the environmental impact of such a massive development is a major concern. The project's scale—covering over 26,500 square kilometers—poses significant risks to local ecosystems, particularly in the Red Sea, which is home to rich marine biodiversity. Critics argue that the construction of artificial islands and extensive urbanisation could lead to irreversible ecological damage. The enormous water and energy demands required to maintain a green city in the desert also raise questions about the project's sustainability. Economic Viability and Cost Overruns: NEOM is one of the most expensive development projects in history. But there are serious doubts about its economic viability. Critics question whether the project can attract the necessary foreign investment and whether it will generate sufficient returns to justify the enormous expenditure. The economic risks are further compounded by potential cost overruns and delays, which are common in megaprojects of this scale. This financial gamble has led some to worry that NEOM could become a costly white elephant if it fails to meet its ambitious goals. Technological Overreach and Ethical Concerns: NEOM is envisioned as a high-tech city, heavily reliant on artificial intelligence, robotics, and extensive surveillance systems. While this technological ambition is central to NEOM's identity, it also raises significant ethical concerns. The level of surveillance planned for the city could lead to unprecedented control over residents' lives, sparking fears about privacy and civil liberties. The lack of transparency about how AI will be used, coupled with concerns about job displacement, has also led to criticism that NEOM's technological vision may be more dystopian than utopian. Cultural and Social Disconnect: NEOM's vision of a futuristic, liberalized society clashes sharply with Saudi Arabia's deeply conservative cultural norms. The project plans to introduce mixed-gender sports, entertainment events, and other liberal lifestyle elements that are rare in the kingdom. This cultural shift has raised concerns about a potential clash between NEOM's globalised vision and the traditional values of Saudi society. The disconnect between the project's ambitions and the broader cultural context has led to skepticism about whether NEOM can truly integrate into Saudi Arabia's social fabric without causing significant friction. Among its other scandals, satellite images analysed by Naraspace and ESA showed construction slowing across key NEOM sites. While the Hidden Marina and wind farms near The Line show some signs of life, vast swathes of the project are going dark – literally. Nighttime light intensity, used as a proxy for construction activity, has plummeted in the eastern development zones since last September. Bloomberg reports Saudi officials now believe just 2.4 kilometres of the 170-km Line will be built by 2030. Additionally, an ITV documentary alleged 21,000 migrant workers had died since 2016 under the Vision 2030 programme. A Saudi health and safety body dismissed the documentary as 'misinformation.' 9 The Shushah Island resort, part of the Neom project Credit: Neom Project
