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Time of India
2 days ago
- Business
- Time of India
Boom in office space, a boon for local economy
Chennai is witnessing a surge in office space absorption. Led by an uptick in demand from Global Capability Centres (GCCs), BFSI companies, and third-party IT services leasing, the city saw the second-largest absorption among metros, next only to Bengaluru in the past six months (H1 CY2025). The development is indicative of the emergence of new job opportunities and the larger impact on the local economy, pushing housing sales, creation of auxiliary jobs, and springing up of new hospitality ventures in the corporate corridors, according to experts. A report by real estate consultant Colliers India says the city recorded 5.5 mn sq ft of leasing during Jan-June period of the current year, soaring by 57% over the corresponding months last year at 3.5 mn sq ft (H1 CY2024). It is the second largest absorption on par with the National Capital Region (NCR) and higher than Hyderabad and Mumbai. "Demand for Grade A office space in the city has been on the rise in the last few years," says Vimal Nadar, national director and head of research, Colliers India. Ramkumar Ramamoorthy, former CMD, Cognizant India, said the development will have ripple effects. "Each high-value job created by new-age companies, in tech and related services, creates between 3 and 7 downstream jobs, enhances per capita income, and drives higher tax collection. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dementia Has Been Linked To a Common Habit. Do You Do It? Memory Health Learn More Undo Growth in high-value jobs drives higher levels of consumption, local entrepreneurship and economic growth." You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai Ramamoorthy earlier oversaw an employee base spread over 24 mn sq ft across India. He says Chennai is attracting Fortune 500 and Global 2,000 companies including the likes of Mizuho, Bank of America, Workday, AstraZeneca, Hitachi and Shell for whom innovation at scale is important. "In addition to smaller floor space absorption, we see individual firms locking down upwards of a million sq ft of office space in newer technology parks," he said. Rajaram Venkataraman, convener & head, FICCI Tamil Nadu Technology Panel and Strategic Advisor - Kritilabs says, a significant number of jobs created through the 5.5 mn sq ft leasing will be in GCC operations and IT services. "Each IT/ITES job generates 4.5-6.5 auxiliary jobs across sectors including facility management and security, food services and catering, transportation and logistics. Hospitality will see an expansion with 3-4 star hotels expected in key corridors. Commercial real estate comprising retail and F&B space development will see an uptick," he added. The city's IT corridor, OMR and its offshoot, Radial Road (Pallavaram–Thoraipakkam Road) mirrored this growth with expanding new IT parks attracting residential, commercial and hospitality developments. The trickle from OMR and Radial Road will spread to emerging office space destinations such as Tambaram-Vandalur, Porur-Poonamallee, Ambattur-Avadi and Madhavaram belt in north Chennai, where the TN Tech City has been proposed. Knight Frank India says 5.1 million sq ft of office space translates to around 34,000 seats considering 150 sq ft per seat, which is optimal for most tech, professional, and hybrid workplaces. In the past five years (between 2020 and H1 2025), the city added more than 19.2 mn sq ft of office space and total office stock currently stood at 92 mn sq ft. Joseph Thilak, national director, occupier strategy and solutions (Hyderabad & Chennai), Knight Frank India said, "There is a correlation between office absorption and residential housing demand, in markets like Chennai with strong IT/ITES and GCC presence. As firms expand, job creation drives migration and housing demand—in areas close to employment hubs. While a specific job-to-housing unit ratio varies by income segment and city, in Chennai, the continued strength in office absorption is mirrored by steady growth in residential sales, particularly in south and west zones, where most commercial activity is concentrated. " Property consultant Anarock says Chennai was the only city with a significant quarter-on-quarter (QoQ) increase in housing unit sales by 40%. It had a sale of 5,660 units in Q2 (April-June) period against 4,050 units Q1 (Jan-March) even as most of the other metros, except for NCR, either saw a QoQ dip or marginal rise in their respective home sales. With the city's office space stock is all set to reach 100 mn sq ft in the next few years, urban development experts are stressing on planned infrastructure growth and ensuring quality of living. Former professor of urban engineering at Anna University K P Subramanian says, the Chennai Metropolitan Development Authority (CMDA) may have to be proactive in this regard. "Sensing development trends, CMDA may assess demand for offices at potential locations, prepare integrated projects with a holistic approach, and execute them."
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Business Standard
10-07-2025
- Business
- Business Standard
Six Indian cities rank among Asia-Pacific's top 10 tech talent hubs
Six Indian cities — Bengaluru, Hyderabad, Delhi-NCR, Mumbai, Pune, and Chennai — ranked among the top 10 in the Asia-Pacific for tech talent acquisition, according to Colliers' Global Tech Markets: Top Talent Locations 2025 report. India now stands alongside China and Japan as one of the only three countries to have cities represented in the global top 10 rankings. In the Asia-Pacific rankings, Singapore was the only non-Indian market included in the top five. Taipei, Sydney and Melbourne were also among the top 10 tech talent markets. The study analysed over 200 global markets, assessing factors such as talent availability, venture capital funding, labour market dynamics, and industry maturity. Largest number of data scientists in Bengaluru Indian cities now account for 69 per cent of Asia-Pacific's total tech talent, outpacing other markets in the region. Bengaluru leads with the world's largest concentration of data scientists, followed closely by Hyderabad with its rapidly growing base of under-25 tech professionals. 'India is a powerhouse of tech talent and a key player in the global innovation ecosystem,' said Arpit Mehrotra, managing director of office services in India, Colliers. 'High-quality office space, robust IT infrastructure, and cost competitiveness continue to attract global tech companies.' Tech sector drives office space uptake In the first half of 2025, technology occupiers leased more than 10 million sq ft of Grade-A office space across India's top seven cities, accounting for 40 per cent of total conventional office leasing. Bengaluru and Hyderabad led the absorption, jointly accounting for nearly 50 per cent of the demand. Technology firms were also the leading players in the flex space market, comprising nearly half of all flex leasing activity in H1 2025. GCCs central to India tech office growth The growth of Global Capability Centres (GCCs) is a key pillar of India's tech office story. In the first half of 2025, technology-focused GCCs accounted for 41 per cent of total GCC leasing, amounting to 5.2 million sq ft. Bengaluru, Delhi-NCR, and Hyderabad alone generated over 85 per cent of this demand. 'Tech GCCs in India are steadily evolving from traditional support centres to strategic innovation hubs. As global firms scale and transform, India's cost advantage and talent quality continue to drive sustained GCC expansion,' said Vimal Nadar, national director and head of research at Colliers India. Young workforce drives tech talent growth India's under-25 tech workforce has grown by 9 per cent between 2014 and 2022 — more than 20 times the all-industry average. Bengaluru, Hyderabad and Jakarta are among the top cities benefiting from this youth-driven surge. Top VC markets based in Asia-Pacific The Asia-Pacific region now houses all of the world's top 10 markets for venture capital deal growth, led by China. While China dominates in overall investment volume, India continues to attract significant global interest due to its cost-effective operations, talent scale, and sector depth. 'Asia-Pacific is drawing significant global attention for its unmatched tech talent density and strong venture capital momentum, particularly in India and China,' said Mike Davis, managing director, office services, Asia Pacific at Colliers.
Time of India
03-07-2025
- Business
- Time of India
Domestic investments in Indian real estate surge 53% to $1.4 billion in H1 2025
NEW DELHI: India's real estate sector attracted USD 3 billion in institutional investments in the first half of 2025, with domestic investors contributing nearly half (48%) of the total inflow, according to the latest data from Colliers. While overall inflows declined 15% year-on-year, the sharp 53% rise in domestic capital to USD 1.4 billion provided a critical buffer amid a slowdown in foreign investments. Domestic capital, long playing a secondary role, has stepped up significantly, growing from just 16% of total investments in 2021 to nearly half in H1 2025. Foreign investments, in contrast, declined 39% year-on-year to USD 1.6 billion, impacted by global credit tightening and macroeconomic uncertainty. The sector witnessed a strong recovery in Q2 2025, with investments rising 29% over Q1 to USD 1.7 billion, indicating renewed investor confidence across residential, office, and retail assets. Residential real estate led the inflows during the half-year with USD 819.9 million—a 27% year-on-year growth—followed by the office segment with USD 702.8 million, though the latter saw a 22% decline compared to H1 2024. 'The growing influence of domestic capital has helped cushion the impact of global headwinds,' said Badal Yagnik , CEO of the company. 'Over 60% of domestic investments in H1 2025 went into residential and office segments, reflecting sustained faith in India's core real estate sectors.' Mumbai and Bengaluru collectively accounted for 39% of the total investment inflows. Mumbai led with 22% share, clocking USD 656.3 million, a massive 408% jump from the same period last year. Bengaluru followed with USD 498.8 million, a 15% increase, with both residential and office segments comprising 57% of the city's share. An unexpected highlight came from Kolkata, which captured 13% of total inflows on the back of a significant retail transaction worth USD 380 million. Meanwhile, the mixed-use asset class saw inflows surge 148% to USD 628.5 million, indicating rising appetite for integrated developments. Retail and alternate assets also gained traction, collectively accounting for USD 0.5 billion, led by marquee deals in emerging consumption hubs. City wise investment inflows in Q2 2025 and H1 2025 (in USD million): CityQ2 2024Q2 2025Investment share in Q2 2025 (%)Q2 2025 vs Q2 2024(% YoY Change)H1 2024H1 2025Investment share in H1 2025 (%)H1 2025 vs H1 2024 (%YoY change)Bengaluru228.8242.314%6%432.0498.817%15%Chennai33.0-0%-100%154.148.31%-69%Delhi NCR308.7108.96%-65%337.9180.46%-47%Hyderabad43.021.01%-51%300.9256.28%-15%Kolkata-380.023%*NA-380.013%*NAMumbai98.4367.222%273%129.1656.322%408%Pune4.317.31%299%258.317.31%-93%Others/ Multi City1,817.1554.533%-69%1,916.2960.832%-50%Total2,533.31,691.2100%-33%3,528.52,998.1100%-15% 'Despite a year-on-year dip in foreign capital, the resilience shown by India's real estate market in Q2 2025 is encouraging,' said Vimal Nadar, head of research of the company. 'Strong domestic consumption, improved affordability, and robust end-user demand are driving momentum in residential and retail segments. We also expect REITs and institutional investors to continue scouting for quality assets, particularly in retail and mixed-use spaces.' While office space investments fell compared to last year, demand remains steady, with corporate occupiers and GCCs continuing to evaluate long-term bets in India. Average deal sizes in H1 2025 also indicated increasing interest in portfolio-level investments. The report underscores that India's maturing real estate ecosystem is becoming more self-reliant, with domestic institutions emerging as stabilizing forces amid evolving global investment patterns.
Economic Times
03-07-2025
- Business
- Economic Times
Domestic capital rises as global caution prevails in Indian real estate
iStock Representative image. India's real estate market is witnessing a decisive shift in the investment landscape, as domestic capital takes center stage amid global caution, reveals Colliers India's Q2 2025 investment overview. Institutional investments touched USD 3.0 billion in H1 2025, with domestic players contributing nearly half of the inflows for the first a relatively modest start to the year, investments rebounded strongly in Q2 2025, rising 29% sequentially to USD 1.7 billion. While this was still 15% lower than H1 2024 levels, the momentum in domestic capital offers a clear sign of confidence in the sector's fundamentals, even as foreign investors tread carefully amid global macroeconomic investments surged 53% year-on-year to USD 1.4 billion in H1 2025, now comprising 48% of total real estate inflows—up from just 16% in 2021. In contrast, foreign capital flows shrank 39% YoY to USD 1.6 billion, impacted by inflationary pressures, tighter credit flows, and global economic uncertainty.'Domestic capital has become a stabilizing force for Indian real estate,' said Badal Yagnik, CEO of Colliers India. 'Over 60% of domestic investments in H1 2025 were directed toward residential and office assets, underscoring investor confidence in core segments.'A standout example is the USD 175 million investment by HDFC Capital Advisors and Eldeco Group in the residential segment across multiple cities, signaling strong domestic institutional appetite for housing-led projects. Residential real estate emerged as the top performer in Q2 2025, drawing 31% of the quarterly investments and 27% of H1 2025 inflows—up 27% YoY. This resurgence was driven by healthy end-user demand, affordability, and a more favorable interest rate Ashwin Sheth Group secured USD 65 million in residential funding from private equity firm PAG, showcasing targeted interest in high-quality housing mixed-use category also gained traction, accounting for 26% of Q2 and 21% of H1 investment volumes. Century Real Estate attracted USD 215 million from Ares Asia and SC Lowy for a large mixed-use project in Bengaluru, reflecting investor preference for integrated of the most notable turnarounds in Q2 2025 came from the retail sector, which garnered USD 380 million—a dramatic shift after negligible activity in previous quarters. This was led by a landmark deal in Kolkata, where Blackstone invested USD 380 million in South City Projects, underscoring rising institutional appetite for high-performing retail assets.'Retail is staging a steady comeback, driven by strong consumption, urbanisation, and evolving spending patterns,' said Vimal Nadar, National Director & Head of Research, Colliers India. 'REITs and institutional investors are actively scouting for quality retail opportunities across key metros.'Retail's overall share in H1 2025 stood at 13%, compared to negligible levels a year ago, signaling a broader revival in physical retail Mumbai and Bengaluru emerged as investment hotspots, jointly contributing 39% of H1 2025 inflows. Mumbai led with USD 656 million, up a staggering 408% YoY, driven by key office and residential deals. Bengaluru followed with USD 499 million, with 57% of its share in residential and office Kolkata's sudden leap—from zero in H1 2024 to USD 380 million in H1 2025—was powered solely by the Blackstone retail deal, Delhi NCR and Hyderabad saw sharp YoY declines of 47% and 15% respectively. Chennai witnessed a steeper drop of 69%, and Pune too saw inflows fall by over 90%, showing concentration of capital in top-tier and high-potential data also reveals a cooling in industrial and warehousing, which contributed 10% to H1 2025 investments but saw zero inflows in Q2 2025. The sector's peak in Q1—highlighted by Welspun One's USD 229 million warehousing deal—could not be sustained in the second quarter, possibly due to project pipeline issues or valuation mismatches. Alternative assets—comprising data centers, student housing, senior living, and life sciences—accounted for 5% of both Q2 and H1 inflows. Notably, GIC's USD 88.2 million investment in SAMHI Hotels reinforced the growing appeal of hospitality and allied sectors. REITs continued to play a critical role, as seen in Mindspace REIT's USD 235 million deal for office assets in Hyderabad earlier this year. While foreign flows declined overall, institutional investors still found value in select core real estate sector continues to navigate a dynamic landscape shaped by domestic strength and global caution. The increasing prominence of homegrown capital is a structural shift, signaling greater maturity, institutional depth, and confidence in long-term domestic investors deepen exposure and foreign players selectively re-engage, the market is expected to remain resilient across residential, retail, and mixed-use segments. With REITs broadening access and large-ticket deals returning, H2 2025 could see an even stronger momentum—especially if global macroeconomic signals stabilize.
Time of India
03-07-2025
- Business
- Time of India
Domestic capital rises as global caution prevails in Indian real estate
India's real estate market is witnessing a decisive shift in the investment landscape, as domestic capital takes center stage amid global caution, reveals Colliers India's Q2 2025 investment overview. Institutional investments touched USD 3.0 billion in H1 2025, with domestic players contributing nearly half of the inflows for the first time. After a relatively modest start to the year, investments rebounded strongly in Q2 2025, rising 29% sequentially to USD 1.7 billion. While this was still 15% lower than H1 2024 levels, the momentum in domestic capital offers a clear sign of confidence in the sector's fundamentals, even as foreign investors tread carefully amid global macroeconomic headwinds. Domestic investments surged 53% year-on-year to USD 1.4 billion in H1 2025, now comprising 48% of total real estate inflows—up from just 16% in 2021. In contrast, foreign capital flows shrank 39% YoY to USD 1.6 billion, impacted by inflationary pressures, tighter credit flows, and global economic uncertainty. 'Domestic capital has become a stabilizing force for Indian real estate,' said Badal Yagnik, CEO of Colliers India. 'Over 60% of domestic investments in H1 2025 were directed toward residential and office assets, underscoring investor confidence in core segments.' A standout example is the USD 175 million investment by HDFC Capital Advisors and Eldeco Group in the residential segment across multiple cities, signaling strong domestic institutional appetite for housing-led projects. Live Events Residential real estate emerged as the top performer in Q2 2025, drawing 31% of the quarterly investments and 27% of H1 2025 inflows—up 27% YoY. This resurgence was driven by healthy end-user demand, affordability, and a more favorable interest rate environment. Mumbai-based Ashwin Sheth Group secured USD 65 million in residential funding from private equity firm PAG, showcasing targeted interest in high-quality housing developments. The mixed-use category also gained traction, accounting for 26% of Q2 and 21% of H1 investment volumes. Century Real Estate attracted USD 215 million from Ares Asia and SC Lowy for a large mixed-use project in Bengaluru, reflecting investor preference for integrated developments. One of the most notable turnarounds in Q2 2025 came from the retail sector, which garnered USD 380 million—a dramatic shift after negligible activity in previous quarters. This was led by a landmark deal in Kolkata, where Blackstone invested USD 380 million in South City Projects, underscoring rising institutional appetite for high-performing retail assets. 'Retail is staging a steady comeback, driven by strong consumption, urbanisation, and evolving spending patterns,' said Vimal Nadar, National Director & Head of Research, Colliers India. 'REITs and institutional investors are actively scouting for quality retail opportunities across key metros.' Retail's overall share in H1 2025 stood at 13%, compared to negligible levels a year ago, signaling a broader revival in physical retail infrastructure. City-wise, Mumbai and Bengaluru emerged as investment hotspots, jointly contributing 39% of H1 2025 inflows. Mumbai led with USD 656 million, up a staggering 408% YoY, driven by key office and residential deals. Bengaluru followed with USD 499 million, with 57% of its share in residential and office segments. While Kolkata's sudden leap—from zero in H1 2024 to USD 380 million in H1 2025—was powered solely by the Blackstone retail deal, Delhi NCR and Hyderabad saw sharp YoY declines of 47% and 15% respectively. Chennai witnessed a steeper drop of 69%, and Pune too saw inflows fall by over 90%, showing concentration of capital in top-tier and high-potential deals. The data also reveals a cooling in industrial and warehousing, which contributed 10% to H1 2025 investments but saw zero inflows in Q2 2025. The sector's peak in Q1—highlighted by Welspun One's USD 229 million warehousing deal—could not be sustained in the second quarter, possibly due to project pipeline issues or valuation mismatches. Alternative assets—comprising data centers, student housing, senior living, and life sciences—accounted for 5% of both Q2 and H1 inflows. Notably, GIC's USD 88.2 million investment in SAMHI Hotels reinforced the growing appeal of hospitality and allied sectors. REITs continued to play a critical role, as seen in Mindspace REIT's USD 235 million deal for office assets in Hyderabad earlier this year. While foreign flows declined overall, institutional investors still found value in select core assets. India's real estate sector continues to navigate a dynamic landscape shaped by domestic strength and global caution. The increasing prominence of homegrown capital is a structural shift, signaling greater maturity, institutional depth, and confidence in long-term fundamentals. As domestic investors deepen exposure and foreign players selectively re-engage, the market is expected to remain resilient across residential, retail, and mixed-use segments. With REITs broadening access and large-ticket deals returning, H2 2025 could see an even stronger momentum—especially if global macroeconomic signals stabilize.
