Office demand to remain strong despite global uncertainties: DLF official

New Delhi, Oct 31 (PTI) India's office market will continue to grow despite global uncertainties as the country has a strong competitive advantage of availability of English-speaking human resources and top quality workspaces, both at a very affordable cost, according to a senior official of realty major DLF Ltd.

Addressing a CII conference on real estate, Sriram Khattar, Vice Chairman & MD (Rental business) at DLF, noted that the demand outlook for both office spaces and retail real estate remains bullish.

"In offices, India has a very, very strong competitive advantage, both in terms of English-speaking young Indians who are available to global companies as a fraction of the cost, and at the same time, global quality commercial workspace solutions, which are also available at a fraction of the cost," he said.

A combination of these two factors makes it a compelling reason for any international company that wants to set up its base in India, said Khattar, who is also Co-Chair at CII National Committee on Real Estate & Housing.

Further, the DLF official said, "Given a very strong digital backbone and the cost of that backbone, I think this is a wave...irrespective of the changing multi-polar geo-economic, political situation across the globe." According to real estate consultant Knight Frank India, the Indian office space stock has surpassed one billion sq ft, ranking the country as the fourth largest globally. The office demand has revived strongly post-COVID pandemic. The gross leasing across the top 7-8 cities hit a record in the last calendar year.

On the retail real estate, Khattar said organised retail is growing faster than retail and retail is growing faster than the growth of the economy.

"I think the biggest thing that has happened to the real estate industry is the introduction of RERA, which at least creates a platform for transparent legislation and framework where institutionalised players can develop and grow," he said.

Khattar said the GST rationalisation and the REIT (Real Estate Investment Trust) framework have been positive for the sector's growth.

On the policy reform, he said CII would take up issues, such as input credit for properties that are leased and properties that are let out, GST exemption for rental housing and a centralised digital portal for building plan sanctions to avoid delays. PTI MJH MJH SHW