Blog Category

    Loading...
    Real Estate in Pune - What’s Driving UHNIs to Reassess Commercial Real Estate Investments.
    July 5, 2025
    What’s Driving UHNIs to Reassess Commercial Real Estate Investments

    India’s ultra-high-net-worth individuals (UHNIs) are refining their investment approach toward commercial real estate (CRE). The reassessment currently underway is a strategic recalibration of how capital is deployed, into what it is deployed and the role commercial real estate plays in a future-proofed portfolio./p>

    Several macro and structural trends are fueling this shift:

    • From opportunistic to defensive: There is a clear pivot from speculative land banking and greenfield assets to stabilized, income-yielding developments with strong tenancy and long-term viability.
    • Form of ownership is evolving: Direct holdings and fragmented stakes are giving way to institutional models like REITs that offer scale, governance, and exit visibility.
    • ESG driving decisions: : With regulatory frameworks and global investors prioritizing sustainability, UHNIs are proactively integrating ESG-aligned assets that ensure both compliance and relevance.
    • Liquidity and intergenerational planning: Asset transferability, governance clarity, and estate readiness are becoming top priorities, especially for family offices planning across generations.

    Together, these forces represent a fundamental repositioning. CRE is no longer viewed in isolation as a high-yielding asset. It is now being evaluated as a strategic wealth tool, one that must perform across cycles, align with ESG norms and support liquidity and succession planning. The reassessment is not about exiting the market. It is about upgrading the playbook. Let’s delve into each aspect shaping this transition.

    From Expansion To Consolidation

    The first visible shift is a clear move from aggressive expansion to strategic consolidation. Earlier, UHNIs were key participants in land aggregation and greenfield office investments. Today, they are narrowing their focus to high-performing, fully built, income-yielding Grade A assets.

    This reflects not just a change in risk appetite, but in investment philosophy. Asset quality, tenant profile, and compliance readiness have taken precedence over speculative upside.

    This recalibration is supported by market data. Capital deployment into Indian real estate reached USD 11.4 billion in 2024, a 54% year-over-year growth, largely driven by completed assets and well-located land acquisitions (CBRE).

    The new mandate is clear: fewer assets, stronger fundamentals and consistent rental performance. The next layer of this shift involves how UHNIs prefer to own these assets.

    Form Of Ownership Is Evolving

    Alongside asset preference, the structure of ownership itself is transforming. UHNIs are moving away from direct, individually held assets or co-invested fragments in family partnerships. Instead, they are leaning into institutional models like REITs, Alternative Investment Funds (AIFs), and managed discretionary platforms.

    These structures offer several advantages:

    • Liquidity through public markets or defined exit windows
    • Professional management with compliance and operational oversight
    • Governance standards aligned with global best practices
    • Diversification within and across asset classes

    A prime example of this evolution is the scale at which REITs are being capitalized. Embassy Office Parks REIT, India’s largest, has announced plans to raise USD 400 million to meet growing demand for institutional-grade office assets (Reuters).

    For UHNIs, these platforms deliver transparency, reduced administrative burden and exposure to well-performing assets without operational complexity. But ownership models are only one part of the equation. Asset performance is increasingly being driven by sustainability metrics.

    ESG Driving Decisions

    Environmental, Social, and Governance (ESG) factors have moved from being soft preferences to hard investment filters. Whether driven by SEBI’s Business Responsibility and Sustainability Reporting (BRSR) norms or global LP mandates, ESG now shapes portfolio construction.

    As of end-2024, 66% of Grade A office stock across India’s top six cities was green-certified, amounting to 503 million sq ft. More notably, over 75% of all leasing in 2024 took place in green-certified buildings, underscoring a structural market shift, not a passing trend (Colliers).

    This growing preference for sustainable assets is not confined to new supply. Developers are actively retrofitting older buildings to improve ESG scores, unlocking a market opportunity worth over INR 425 billion (Colliers). This ESG integration is not only about compliance. It is now a strategic lever for:

    • Enhancing asset valuation and rental premiums
    • Attracting global corporate tenants with sustainability mandates
    • Staying compliant and responsible in an increasingly regulated and climate-conscious market

    Air quality monitoring, energy efficiency systems, waste reduction, and wellness infrastructure are now prerequisites for future-ready CRE portfolios. This reorientation towards quality and compliance also aligns with a deeper concern: preparing assets for smooth intergenerational transfer.

    Liquidity And Intergenerational Planning

    A critical driver behind the reassessment is the growing need for estate readiness and wealth continuity. UHNIs are increasingly viewing CRE through the lens of transferability, ease of governance, and long-term asset hygiene.

    Family offices are prioritizing:

    • Clear holding structures with well-defined ownership and succession protocols
    • Simplified exits through REITs or managed funds that allow redemption or divestment
    • Portfolio hygiene ensuring assets meet legal, compliance, and tax thresholds for smooth inheritance

    This is particularly relevant as the first generation of Indian wealth transitions to the next. Structures that offer transparency, liquidity, and minimal transfer friction are being favored over legacy holdings that are operationally burdensome or non-compliant. CRE is no longer just a source of income. It is now also a critical estate planning tool.

    As India’s commercial real estate evolves, UHNIs are sharpening their lens, filtering for transparency, yield resilience and ESG alignment. The shift is not about cutting exposure, but about elevating the quality of exposure.

    At SQUAREA, we specialize in helping investors navigate this next cycle. From REIT entry strategies to pre-leased Grade A assets and co-investment platforms, our advisory ensures alignment with your long-term capital goals and risk appetite.

    To learn more or build your next strategic CRE allocation, connect with us at hello@squarea.io or call +91 90 9641 9641.

    Real Estate in Pune - India’s Commercial Real Estate: A 2025 Outlook on Growth and Investment.
    May 23, 2025
    India’s Commercial Real Estate: A 2025 Outlook on Growth and Investment

    2024 delivered a record-breaking year in terms of absorption and sustainable supply. Leasing volumes hit historic highs, green-certified spaces gained overwhelming tenant preference, and development activity concentrated in markets with infrastructure depth and regulatory readiness. Additionally, it also laid down a blueprint for what investors must now focus on, in 2025. But to assess where commercial real estate is headed in 2025, it is essential to begin with the underlying patterns that defined the last calendar year.

    2024 Commercial Real Estate Performance: Scale, Structure, and Signals for What’s Next
    India’s office market achieved its highest-ever gross absorption in 2024, recording 79 million sq. ft. of leasing activity, a 16% year-on-year increase (CBRE Q4 2024). This expansion was led by Global Capability Centres, BFSI institutions, and technology majors, each demonstrating a preference for Grade-A and future-ready commercial assets.

    What set this leasing cycle apart was not just the volume, but the structure of the demand. Key trends included:

    • Long-Term Tenancy: Occupiers moved towards multi-year commitments, preferring lease durations that reflect long-term operational alignment and capex recovery stability.
    • Escalation Clauses: Structured rent escalations, built into lease terms ensured predictable yield growth for asset owners and long-term visibility for investors.
    • Compliance-Led Infrastructure:Tenants actively sought buildings with global compliance standards, digital readiness, and sustainability certifications such as LEED or IGBC.
    • ESG-Centric Decision Making: Leasing preferences reflected increasing pressure from corporate ESG mandates, making green-certified buildings the default rather than the differentiator.

    These shifts in leasing behaviour highlight more than market momentum, they indicate a set of qualitative filters now shaping both occupier and investor decisions. For 2025, recognising these benchmarks is essential to understanding where capital is consolidating and why certain assets are outperforming.

    2025 Investment Blueprint

    India’s commercial office sectors performance is being driven by a multitude of factors. As capital becomes more discerning, three critical filters have emerged at the centre of commercial real estate decision-making: sustainability, grade relevance, and micro-market precision.

    Sustainability

    In Q4 2024, over 50% of new office completions were green-certified, with 80–85% of future pipeline expected to follow this trend (CBRE Q4 2024, ET Realty). Furthermore, more than 70% of leasing activity took place in green-certified buildings, underscoring ESG compliance as a central occupier requirement.

    This transition not only reflects a regulatory obligation, but also a core strategic priority for global tenants. Corporate sustainability goals and green-certified infrastructure is now non-negotiable. Developers are adjusting accordingly, embedding compliance, energy efficiency, and smart design from the outset.

    Grade Relevance

    India’s commercial leasing landscape in 2024 was dominated by the surge in demand for Grade-A office assets. Gross leasing activity across the top six cities reached 47 million sq. ft. by Q3, representing a 23% year-on-year increase, and by year-end, Grade-A absorption was projected to cross 60 million sq. ft., the highest in India’s history (Economic Times).

    But even within the Grade-A category, a deeper shift is underway. The market is now favouring “relevant-grade” buildings, assets that go beyond minimum classification standards to deliver digital integration, ESG compliance, wellness infrastructure, and future-proof layouts.

    Micro-Market Precision

    Alongside sustainability and grade, micro-market selection is emerging as a third determinant of asset performance. Institutional capital is not spreading widely, it is going deep, favouring established corridors with infrastructure depth, high occupier density, and regulatory clarity.

    This targeted deployment is most evident in Pune, Bengaluru, and Hyderabad. These cities accounted for 67% of India’s total new office completions in 2024, contributing to a cumulative 52.3 million sq. ft. of new supply (CBRE Q4 2024). Within these cities, select submarkets have consistently absorbed the bulk of institutional leasing activity due to their alignment with occupier priorities, operational resilience, and compliance infrastructure.

    Among these, Pune, and more specifically, Kharadi NX, has evolved from a promising node to a strategic investment destination, setting a new institutional standard in micro-market performance.

    Pune and Kharadi NX: A High-Conviction Market promising Growth

    With robust infrastructure, a strong tenant base, and high-grade development activity, Pune ranked among the top three cities for leasing and new completions in 2024. Within this landscape, Kharadi NX has also transitioned from a growth node to a fully institutionalised commercial corridor. It now offers the core fundamentals that investors seek: connectivity, tenant concentration, and scalable asset formats designed for long-hold performance.

    Key drivers fuelling Kharadi NX’s ascent include:

    • Proximity to Pune International Airport and the Central Business District
    • Upcoming connectivity via Pune Metro Line 2 and the Ring Road corridor
    • Presence of global occupiers across IT, BFSI, and consulting sectors
    • Availability of LEED- and IGBC-certified campuses with flexible layouts and integrated ESG infrastructure

    One of the key developments include Omicron Business Landmarks, a project that exemplifies the market’s direction. It features high-efficiency office formats, integrated ESG infrastructure, and strategic connectivity, making it well-positioned to attract long-term, high-value tenants.

    And we at SQUAREA, specialise in identifying such institutional-grade commercial assets across India’s most resilient and performance-led markets. Whether your objective is income yield or long-hold appreciation, our expert team will align your strategy with developments that meet international benchmarks and domestic regulatory confidence. Write to us at hello@squarea.io or call +91 90 9641 9641 to capitalise on this opportunity strategically!

    Real Estate in Pune - Understanding the ROI of High-End Commercial Spaces.
    May 23, 2025
    Understanding the ROI of High-End Commercial Spaces

    In today’s commercial real estate environment, return on investment is defined by more than just rental yield. It reflects a deeper calculus, one that accounts for asset grade, lease structure, tenant quality, and long-term resilience. As institutional capital becomes more selective and compliance benchmarks tighten, high-end commercial spaces have emerged as the most credible vehicles for durable, risk-mitigated growth.

    For investors seeking stable income, long-term value preservation, and institutional-grade performance, high-end commercial real estate has become a core component of performance-led portfolios. As the fundamentals of ROI become more layered, it is essential to break down the individual factors that shape returns in high-end commercial assets.

    What Drives ROI in Commercial Real Estate?

    The ROI of a commercial property is a product of several interlinked variables. Some of the core indicators include:

    • Escalation clauses: Structured rent growth over time
    • Vacancy risk: Downtime between leases and tenant turnover
    • Exit potential: Resale value and REIT-readiness
    • Rental yield: Recurring income relative to capital invested

    According to Business Standard, commercial office assets in India offer yields of 5-7%, significantly outperforming residential properties, which hover around 3%. This spread forms the baseline of return, but in high-end office spaces, ROI is built on much more than yield. The next layer of ROI is influenced by the quality and grade of the asset, and this is where ‘relevant-grade’ commercial spaces emerge as clear outperformers.

    The Role of Asset Grade in Return Potential

    Over the last few years, a new benchmark has come to define premium commercial assets, relevant-grade. These are not just modern offices, they are future-ready spaces that exceed standard Grade-A specifications on every front. According to JLL, as of H1 2024, India’s top seven cities had approximately 465 million sq. ft of relevant-grade stock, forming 56.3% of the total Grade-A inventory. These properties command a 19.8% premium, with average rents at ₹92.4 per sq. ft/month, a clear indicator that occupiers value quality and are willing to pay for it.

    What sets ESG-compliant commercial assets apart:

    • Smart systems: Digital access, energy-efficient HVAC, and building automation
    • Sustainability: LEED or IGBC certification, water and waste management
    • Efficient design: Flexible layouts, better ventilation, and employee-first planning
    • Integrated ecosystems: Cafeterias, wellness zones, EV stations, and flex work areas

    Along with asset grades, the structure of tenancy and income continuity are equally decisive in realising long-term ROI./p>

    Lease Structures and Tenant Quality: The Hidden Engines of ROI

    Premium commercial spaces are defined not only by where they are or how they look, but who occupies them and under what terms. In high-grade assets, tenants are typically from IT, BFSI, global consulting, or GCC sectors. These organisations:

    • Enter into longer lease agreements, ensuring prolonged income visibility
    • Undertake significant capital outlay on interiors and fit-outs, increasing lease stickiness
    • Require scalable, compliance-ready infrastructure that aligns with global operational standards

    For investors, this translates into several advantages:

    • Predictable income growth through pre-agreed rent escalations built into multi-year lease contracts
    • Low vacancy exposure, driven by long-term tenant commitment and limited churn
    • High tenant retention, ensuring continuity of cash flow with minimal downtime between leases

    These factors also make relevant-grade leased assets REIT-compatible, offering greater liquidity and exit potential, an increasingly important consideration for private and institutional investors alike.

    Why 2025 Is a Strategic Entry Point for Investors

    India’s commercial office sector is undergoing a structural shift. ESG benchmarks, design innovation, and tenant expectations are converging to define a new era of real estate development. And 2025 CRE investment trends present a timely opportunity to enter high-grade commercial markets.

    Here’s why:

    • Developers are launching strata-sale and lease-ready assets across top urban corridors
    • Demand from sectors like Global Capability Centres, flex workspaces, and BFSI continues to rise
    • Global tenants are aligning portfolios to ESG-compliant commercial assets, making relevant-grade the default standard

    This shift is also reflected in the nature of upcoming inventory. Projects such as the upcoming Trump World Center in Pune, a 1.6 million sq. ft. branded commercial development, are offering both for-sale and leased formats (TOI). It reflects the growing alignment between global investment preferences and India’s evolving commercial inventory.

    With future supply increasingly focused on premium office space investment and ESG-aligned assets, investors who enter the market at this stage are well-positioned to capitalise on a cycle defined by resilient income, sustained occupier demand, and long-term value creation.

    At SQUAREA, we help you align your capital with future-ready commercial assets that are graded for performance. Whether your goal is to acquire leased institutional assets, invest in premium strata offices, or explore ESG-compliant office campuses, we provide tailored investment access backed by in-depth research, location strategy and asset due diligence.

    Connect with us at hello@squarea.io or call +91 90 9641 9641 to unlock the ROI of high-end commercial real estate—strategically, securely, and successfully

    Real Estate in Pune - Kharadi in 2025: Pune’s Fastest Growing Hub for Commercial Real Estate.
    April 14, 2025
    Kharadi in 2025: Pune’s Fastest Growing Hub for Commercial Real Estate

    Once known as a quiet neighborhood on the outskirts of Pune, Kharadi has emerged as the epicentre of East Pune’s commercial real estate market. With seamless connectivity, Grade-A office space in Kharadi, and institutional-grade developments, Kharadi now plays a pivotal role in driving Kharadi commercial real estate 2025 momentum.

    This transformation is underpinned by robust market performance. According to Cushman & Wakefield’s Q1 2025 Office Market Report, Pune recorded a historic leasing high of 3.5 million sq. ft, led predominantly by the East Secondary Business District. This is a top commercial hub in Pune that includes Kharadi. SBD East accounted for the highest net absorption in the city at 1.1 million sq. ft, propelled by high ticket-size deals, particularly from BFSI and flexible workspace operators. This activity was anchored in Grade-A commercial spaces, top-tier office assets that offer best-in-class specifications, efficient layouts, and global-standard amenities.

    What’s fuelling this momentum is a convergence of many key factors. Let’s take a closer look at the reasons why Kharadi commercial real estate 2025 is leading the charge as Pune’s most promising commercial investment destination.

    1. Seamless Connectivity to Key Economic Zones

    Kharadi’s location offers unmatched access to Pune’s key commercial corridors. It sits in proximity to established hubs such as:

    • Magarpatta City
    • World Trade Centre
    • EON IT Park
    • Kalyani Nagar and Koregaon Park

    This connectivity allows businesses in Kharadi to tap into an existing ecosystem of IT majors, financial institutions, and global corporates, making it a magnet for high-value office leasing in Kharadi.

    2. Metro Line 2 Extension: A Game Changer for Commute Efficiency

    The upcoming extension of Pune Metro Line 2 will connect Kharadi to Bund Garden, Kalyani Nagar, and Ramwadi, reducing travel times across key zones. Once operational, it will directly benefit daily commuters and corporates, while also enhancing the investment viability of adjacent commercial assets.

    Areas along operational and upcoming metro corridors will typically witness a price appreciation, as improved access leads to stronger demand from occupiers and businesses (MagicBricks).

    3. Pune Ring Road Project: Boosting Inter-City Mobility

    Another significant boost to Kharadi’s profile is the Pune Ring Road project, designed to improve city-wide connectivity and reduce congestion across high-traffic zones. It will directly link Kharadi to key growth centres, including Shivajinagar, Hadapsar, Hinjewadi, and Baner.
    Estimates suggest that commercial properties in areas connected by new ring roads and bypasses could see capital appreciation of 15–20% by 2025.

    Estimates suggest that commercial properties in areas connected by new ring roads and bypasses could see capital appreciation of 15–20% by 2025.

    4. Proximity to Pune International Airport

    Kharadi’s location offers a critical edge—direct access to Pune International Airport, situated approximately 8.5 kilometres away. This makes it exceptionally well-suited for corporates with frequent air travel needs and companies dealing with international clientele. The convenience factor alone has been a key driver for multinational firms choosing Grade-A office space in Kharadi for regional headquarters or operational centres.

    5. Grade-A Commercial Supply with Modern Amenities

    Kharadi is home to some of Pune’s premium business parks – office properties that adhere to global standards in design, safety, sustainability, and tenant experience. These include:

    • World Trade Center
    • EON Free Zone
    • Gera Commerzone

    These developments offer features like LEED-certified design, smart infrastructure, flexible floorplates, and modern green amenities, making them highly attractive for blue-chip tenants and institutional investors.

    6. Strong Tenant Demand from IT and Allied Sectors

    Kharadi has become a nucleus for technology, finance, and consulting firms, creating consistent demand for both office and co-working spaces. With high occupancy levels in most Grade-A developments, office leasing in Kharadi has remained robust even during broader market slowdowns.

    This growth is part of a broader upswing in the city’s commercial development. Pune’s new Grade-A office supply witnessed a 53% quarter-on-quarter and over 90% year-on-year increase. SBD East, which includes Kharadi and the CBD together, absorbed this entire new supply.

    Despite the scale of additions, a healthy pipeline of 10–11 million sq. ft in upcoming supply is expected through 2025–26 (Cushman & Wakefield).

    7. Upcoming Hospitality and Mixed-Use Ecosystem

    Beyond office infrastructure, Kharadi is witnessing the emergence of mixed-use ecosystems with luxury hotels, branded residences, retail complexes, and serviced apartments. The presence of these upscale options makes it a compelling proposition for both domestic and NRI investors.

    8. Future-Ready Planning

    Developers in Kharadi are now embracing future-forward planning, including:

    • Net-zero commercial buildings
    • Green-certified campuses
    • EV-ready infrastructure

    This aligns closely with the increasing emphasis on Environmental, Social, and Governance (ESG) standards, which are now a key lens through which institutional investors evaluate Kharadi commercial real estate 2025.

    With Kharadi’s projects increasingly meeting these global benchmarks, the submarket is fast becoming a natural choice for long-term, impact-driven capital. In every sense, Kharadi’s commercial landscape isn’t just evolving, it is being intentionally designed for the next generation of businesses and investors.

    At SQUAREA, we specialise in helping investors navigate the evolving landscape of Pune commercial real estate. Our deep market intelligence ensures that you stay ahead of the curve. If you’re looking to build a resilient, high-performing commercial portfolio in one of Pune’s top commercial hubs, like Kharadi, our advisory team is here to guide you at every step.

    For tailored investment opportunities, write to us at hello@squarea.io or call us at +91 90 9641 9641. Let’s build your commercial portfolio, the future-ready way!

    Real Estate in Pune - Commercial Real Estate in Pune: Key Areas and Market Trends to Watch in 2025.
    April 10, 2025
    Commercial Real Estate in Pune: Key Areas and Market Trends to Watch in 2025

    Once known for its academic and automotive prominence, Pune’s commercial real estate is now emerging as one of India’s most dynamic investment stories. Fueled by a growing tech ecosystem, the rise of Global Capability Centres (GCCs), and consistent demand from multinational companies in IT, BFSI, and consulting, Pune has established itself as a resilient and highly active Tier 1 office market.

    In 2025, the city continues to demonstrate strong fundamentals—with over 10 million sq. ft of new Grade-A office spaces in Pune slated for delivery. This expansion is not just holding investor interest—it’s reshaping the national outlook on commercial real estate hotspots in India. Here’s a closer look at the areas driving this growth and the market trends that are set to define the coming year.

    Key Investment Areas in Pune’s Commercial Real Estate Market

    Pune’s commercial growth is centred around a mix of established corridors and high-potential emerging nodes. The following micro-markets offer the strongest mix of location advantage, infrastructure readiness, and premium-grade development:

    1. Secondary Business District East (Kharadi, Viman Nagar, Yerwada, Kalyani Nagar)

    SBD East continues to be the powerhouse of Pune’s commercial activity. In Q1 2025 alone, it accounted for 1.12 million sq. ft of net absorption—45% of all office space in Pune —with sustained leasing momentum from BFSI, IT, and flexible workspace players.

    Despite 1.65 million sq. ft of new supply in the quarter, average rentals held steady at ₹98.84 per sq. ft/month, showcasing robust occupier confidence. Its proximity to Pune Airport, upscale residential zones, and city centre connectivity makes SBD East a long-term growth magnet for institutional investments.

    2. Central Business District (Bund Garden, Koregaon Park, Camp)

    While CBD Pune saw more muted activity (approx. 9% of leasing in Q1 2025), its premium appeal remains strong. Net absorption was around 0.23 million sq. ft, with flexible workspace players and mid-size corporates opting for centralised addresses. Though vacancy stands at 21.5%, this is a strategic zone for high-value, high-visibility occupiers.

    3. Peripheral Business District West (Hinjewadi, Baner, Wakad)

    The PBD West corridor remains the city’s core tech and SEZ cluster, anchored by Rajiv Gandhi Infotech Park and major IT campuses. Known for scalability and affordability, it’s seeing rising interest from GCCs, coworking operators, and investors targeting rental yield. Projects like Blue Ridge SEZ are drawing strong institutional and NRI investor interest.

    4. Emerging Nodes (Pimpri-Chinchwad, Hadapsar, Mundhwa, Balewadi)

    Pune’s emerging commercial hubs are gaining momentum. Developments like Kohinoor World Towers (Pimpri-Chinchwad) and Amar Pristine 81 (Mundhwa) are attracting both startups and private investors seeking competitive entry points. These areas offer modern amenities, good residential catchments, and strategic affordability—positioning them as Pune’s next growth story.

    Market Performance: Key Trends from 2024 to Q1 2025

    • 2024 Highlights: According to Knight Frank, Pune recorded an 8 million sq. ft leasing volume in 2024 — a 19% year-on-year jump. Leasing was broad-based, led by IT, BFSI, and coworking segments.
    • Q1 2025 Trends: Pune added 3.2 million sq. ft of new Grade-A supply, a 90% jump YoY. While vacancy rose slightly to 11.23%, Pune remains India’s second-tightest office market after Bengaluru (Cushman & Wakefield).
    • Absorption Strength: Occupier activity remains strong across midsize and large leases, with a visible trend of early pre-commitments in under-construction projects.

    What Lies Ahead: Pune’s Commercial Outlook for 2025 and Beyond

    Pune is poised for exponential growth over the next two years:

    • 10 million sq. ft in 2025, followed by 11 million sq. ft in 2026 (Cushman & Wakefield)
    • Increasing entry of internationally branded commercial projects, including the much-awaited Trump World Center Pune, a 1.6 million sq. ft development offering strata and leased spaces
    • Growing preference for asset-backed income plays among both institutional and retail investors

    Why Pune Stands Out Among India’s Commercial Real Estate Hotspots

    • Lower entry costs compared to Mumbai and Bengaluru
    • Steady rental yields across key SBD and PBD corridors
    • Strong occupier diversity, spanning tech, banking, consulting, and GCCs
    • High-quality infrastructure and liveability standards in surrounding zones

    These factors ensure that Pune commercial real estate continues to lead in both institutional confidence and private investor interest.

    At SQUAREA, we work with investors, developers, and occupiers to identify high-performing opportunities across Pune’s most strategic corridors. Whether you’re looking to invest in leased Grade-A office spaces in Pune, acquire part of landmark developments like Trump World Center Pune, or enter Pune’s emerging commercial hotspots, our expert team provides data-backed insights and end-to-end advisory support.

    To learn more, connect with us at hello@squarea.io or call +91 90 9641 9641.

    Real Estate in Pune - Diversification with SM REITs: A Smart Move for Risk-Averse Investors
    November 6, 2024
    Diversification with SM REITs: A Smart Move for Risk-Averse Investors

    For a long time, commercial real estate has been the domain of large institutional investors and high-net-worth individuals. However, the launch of Small and Medium Real Estate Investment Trusts (SM REITs) is redefining this notion, offering a pathway for smaller investors to participate in the lucrative world of commercial real estate investment in India.

    So, what exactly are SM REITs, and why are they capturing the attention of cautious investors??

    Understanding SM REITs

    Small and Medium REITs (SM REITs India) are emerging as a sophisticated investment option, offering a strategic pathway into commercial real estate without the need for direct ownership. Structured as pooled investment vehicles, SM REITs allow investors to participate in high-quality commercial properties—from office buildings to logistics hubs and warehouses—generally valued in the ₹50–500 crore range.

    Unlike traditional REITs, which often target large institutional investors, SM REITs are specifically tailored to meet the needs of smaller investors. By lowering the capital entry barrier, SM REITs enable a more diversified, accessible approach to commercial real estate, allowing investors to gain exposure to income-generating assets with strong growth potential in India’s property market

    With a minimum investment of ₹10 lakh, investors can own a portion of prime, income-generating real estate. Now, even smaller investors can secure a foothold in the commercial real estate sector, participating in properties that are not only income-generating but also possess capital appreciation potential.

    Why SM REITs Matter for Diversification

    1. Portfolio Diversification Across Commercial Real Estate Segments

    SM REITs open doors to various segments within commercial real estate, including office spaces, warehouses, and logistics centers. For cautious investors, this diversification spreads risk across different asset types, offering exposure to multiple income-generating sources without the administrative complexities of direct property ownership.

    Real estate portfolio diversification through SM REITs enables investors to mitigate risks associated with single-sector investments and capitalize on the robust growth projected across India’s commercial real estate landscape.

    2. Liquidity and Flexibility Through Market Trading

    One of the significant advantages of SM REITs over traditional real estate ownership is liquidity. Unlike direct property investments, which are often illiquid and challenging to divest quickly, SM REITs are publicly traded on stock exchanges, allowing investors to buy or sell units as per market demand.

    This liquidity offers a substantial advantage to those who may need to exit their investments or rebalance their portfolios without the constraints associated with physical property.

    3. Regulatory Oversight and Income Stability

    The SEBI SM REIT regulations provide a level of transparency and security that private real estate investments often lack. This regulatory oversight ensures adherence to high standards of governance and operational transparency.

    Additionally, SM REITs are mandated to invest at least 95% of assets in completed, rent-yielding properties priced above ₹25 crore and less than ₹500 crore, with units to be issued to a minimum of 200 investors—ensuring asset quality and investor safety.

    For risk-averse investors, this aspect of income stability, combined with SEBI SM REIT regulations, enhances the appeal of SM REITs as a reliable investment.

    The Growth Trajectory of India’s SM REIT Market

    SM REITs India are still in their early stages, but the growth potential is compelling. The launch of the first SM REIT IPO in August 2024 was a pivotal moment, representing the beginning of broader acceptance and development within this segment. Industry analysts anticipate a rapid expansion in this space.

    Research projects that the market will grow to over 300 million sq. ft. of completed stock, with an addition of 50+ million sq. ft. expected to be added by 2026. These numbers pertain to mid-sized (0.1–1 million sq. ft.) investment-grade office developments in India’s top seven cities as of Q2 2024.

    Integrating SM REITs into an Investment Portfolio

    For those who have traditionally avoided real estate due to high capital requirements or lack of liquidity, SM REITs offer a compelling alternative. With their mix of real estate stability and stock market liquidity, Small and Medium REITs bridge the gap between direct property investment and the flexibility of publicly traded assets—positioning them as a valuable addition to modern portfolios.

    The emergence of SM REITs India is transforming the commercial real estate investment market in India, offering retail investors an unprecedented opportunity to participate in high-quality real estate assets. With regulatory backing, attractive entry points, and market flexibility, SM REITs are well-suited to meet the needs of evolving investors in India.

    As SM REITs become a pivotal part of a balanced investment strategy, SQUAREA offers the expertise to guide you in this promising sector. Connect with us today to explore tailored solutions that align with your investment goals.

    Real Estate in Pune - Things to Consider When Buying a Commercial Property.
    October 18, 2024
    Things to Consider When Buying a Commercial Property

    With rising global population growth, India’s commercial real estate market has also seen a significant surge. The India Commercial Real Estate Market is estimated at USD 40.71 billion in 2024, and is expected to reach USD 106.05 billion by 2029, growing at a CAGR of 21.10% during the forecast period (2024–2029). Given this trajectory, buying commercial property in India presents lucrative opportunities for long-term returns.

    However, with these opportunities come significant responsibilities. It is crucial to conduct thorough research and exercise due diligence when making such investments. While commercial real estate typically requires larger capital outlays, a well-informed strategy can lead to consistent cash flow over time. Below are key commercial property investment tips to consider before making your move.

    1. Market Analysis

    Before investing, conducting thorough market research is indispensable. Assess the risk factors associated with both buying new properties and purchasing resales. While a new property might carry higher risks than a good resale, it can also offer better returns if located in a developing area. Evaluate the future growth prospects of the location, as well as the current demand for specific property types—whether office spaces, retail outlets, or industrial warehouses.

    For instance, the IT/ITeS sector remains the largest contributor to office space demand in Pune, accounting for approximately 71% of total absorption, recording a year-on-year increase of approximately 12% in 2024.

    2. Location Insights

    Once you’ve identified your target market, the next key step is selecting a location with strong infrastructure and connectivity. Things to consider before buying commercial property include access to highways, subways, airports, and railroads. Commercial properties in such areas are more likely to attract footfall and generate better ROI. Look for expanding markets with proximity to business districts and demographic advantages to ensure long-term demand.

    3. Understanding Lease Structure

    If you’re buying to lease, understanding the lease structure is vital. Be familiar with gross and net leases, and evaluate maintenance clauses, lock-in periods, and tax responsibilities. These aspects directly affect the financial feasibility and risk profile of your investment.

    4. Choosing the Right Developer

    The credibility of the developer significantly impacts the success of a commercial project. Choose developers with a strong record of timely and quality project delivery. This reduces risk and ensures that your investment retains or appreciates in value.

    5. Investment Options

    Commercial real estate spans a range of assets—retail shops, office buildings, warehouses, and SCOs. Assess your budget and select an asset type that aligns with your financial goals. Make sure the asset offers the right balance between rental yield and capital appreciation based on your investment horizon and risk profile.

    6. Tenant Quality

    Reliable tenants ensure consistent returns. MNCs and large corporates offer long-term leases, higher security deposits, and timely rent payments. The quality of tenants can also increase your property’s future resale value, which is critical for making the best commercial property investment decisions.

    7. Risk Assessment

    Avoid over-leveraging and be realistic about market volatility. Evaluate your risk tolerance and regularly monitor real estate trends. Stay informed about regional developments and government policies that could affect pricing and demand.

    8. Expert Consultation

    For first-time investors or those entering new geographies, real estate professionals can provide valuable insights. Partnering with an advisor ensures compliance, market-fit choices, and smart negotiation—essential elements in buying commercial property in India.

    9. Valuation Analysis

    Understand the fair market value of a property. Research local rental rates and historical sale prices. Use comparative sales, cost, and income approaches to ensure you’re not overpaying.

    10. Layout Considerations

    Before finalizing the deal, assess site plans and architectural layouts. Ensure compliance with local building norms, adequate infrastructure provisions, and access to utilities. A poorly designed layout could affect usability and tenant interest.

    India’s commercial real estate market is set to grow steadily, driven by urbanization and economic momentum. By 2030, the sector is projected to hit a valuation of $1 trillion, reinforcing the strength of long-term investment.

    With a thoughtful approach grounded in research and guided by expert counsel, you can unlock enduring value and returns. For those exploring the best commercial property investment opportunities, working with a professional can safeguard your capital and maximize outcomes.