• SEZs account for about 22% of the total office stock in India; almost 35 million sq. ft. of SEZ space was completed and a similar quantum absorbed across leading cities during 2015 - H1 2018.
  • Most occupiers want to kickstart their operations in SEZs by Q3-Q4 2019, in order to avail the benefits before the sunset date. This will ensure that space take-up in this segment remains strong and vacancy levels low at least till the end of 2019. However, post 2019, we can expect rationalization in demand, with occupier decisions based on well-thought out CRE strategies than just tax benefits.
  • The developer community remains skeptical of launching any large-scale speculative development in this segment. Almost 30 mn sft of SEZ space is in various stages of construction till 2020; however, majority of this comprises of new phases of already notified SEZs.
  • Developers are eager to lease out their operational SEZs, while focus on developing a more equitable portfolio comprising of tech parks and corporate office spaces as well.