IRA applaud govt's SEZ amendment to boost office space occupancy

15 Dec 2023 CW Team

According to the association's statement, the new regulations, implemented through a key amendment to SEZ Rules, 2006, allow for partial and floor-wise conversion of processing areas to non-processing zones. Currently maintaining an occupancy rate of approximately 80 percent, the SEZ portfolios across REITs are expected to experience an elevation in occupancy levels, particularly in Grade A Business Parks, due to this recent amendment.

The amendment also enables the utilisation of non-processing areas within these SEZs for establishing businesses operating in the IT/ITeS sector, providing an additional boost to office demand, according to IRA. The founding members jointly express their support for this positive development, emphasising its potential to enhance demand in the Grade A commercial office spaces driven by the needs of Global Captive Centres and domestic businesses.

The IRA sees this amendment as strengthening India's appeal as an investment destination and paving the way for the continued growth of Indian Office REITs. Out of the four listed REITs in India, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust are backed by office assets, while Nexus Select Trust is the country's first retail-asset-backed REIT.

However, since 2020, vacancies across SEZs in the top six cities have been on the rise, currently reaching about 20%, according to Colliers India. The removal of direct tax benefits for new units in SEZs in March 2020 diminished their appeal, leading to occupiers' exits and relocations to non-SEZ office spaces. As a result, the share of leasing for SEZ spaces in overall office leasing declined from 22% in 2019 to 14% in 2022 and further to 7% during January-September 2023, as reported by the consultant.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The Indian REITs Association (IRA) commended the government's decision to permit the allocation of a portion of the built-up area within Special Economic Zone (SEZ) units for non-processing purposes. The IRA, comprising founding members such as Brookfield India Real Estate Trust (BIRET), Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust, believes that this decision will contribute to the occupancy of vacant office spaces within SEZs across major cities. The IRA sees this as a positive development that will stimulate growth in India's office Real Estate Investment Trust (REIT) market. According to the association's statement, the new regulations, implemented through a key amendment to SEZ Rules, 2006, allow for partial and floor-wise conversion of processing areas to non-processing zones. Currently maintaining an occupancy rate of approximately 80 percent, the SEZ portfolios across REITs are expected to experience an elevation in occupancy levels, particularly in Grade A Business Parks, due to this recent amendment. The amendment also enables the utilisation of non-processing areas within these SEZs for establishing businesses operating in the IT/ITeS sector, providing an additional boost to office demand, according to IRA. The founding members jointly express their support for this positive development, emphasising its potential to enhance demand in the Grade A commercial office spaces driven by the needs of Global Captive Centres and domestic businesses. The IRA sees this amendment as strengthening India's appeal as an investment destination and paving the way for the continued growth of Indian Office REITs. Out of the four listed REITs in India, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust are backed by office assets, while Nexus Select Trust is the country's first retail-asset-backed REIT. However, since 2020, vacancies across SEZs in the top six cities have been on the rise, currently reaching about 20%, according to Colliers India. The removal of direct tax benefits for new units in SEZs in March 2020 diminished their appeal, leading to occupiers' exits and relocations to non-SEZ office spaces. As a result, the share of leasing for SEZ spaces in overall office leasing declined from 22% in 2019 to 14% in 2022 and further to 7% during January-September 2023, as reported by the consultant.

Real Estate

05 Sep 2025

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Infrastructure Transport

05 Sep 2025

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Infrastructure Transport

05 Sep 2025

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..