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.

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..