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.

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

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..