How Indian Family Offices Can Leverage Real Estate Analytics

What is a family office? It is a private wealth management service provided to ultra-high net worth investors to concentrate and control over family finances, legal issues, tax, and administration matters. It is believed to be an outsourced solution to regulate the financial and investment dealings of people or families. It operates to offer an optimal solution for developing, maintaining, and transferring family wealth. 

A family investment vehicle or family office is considered to be either a single-family office or a multi-family office. A single-family office backs one family but a multi-family office supports at least two families. Family Offices are growing in India as the country has new billionaires every year. There have been approximately 100 Family Offices that have come up in the past decade or so. 

For quite some time, real estate investing was propelled completely by speculation, educated guesses, and gut feeling. This is why investors kept repeating the same mistakes many times. While risk cannot be fully eradicated, real estate data analytics lets people make informed decisions about lucrative investments, thereby reducing the risk greatly. Today, real estate analytics can be used to increase wealth and enhance their competitive advantage. 

Let’s look at the ways Indian family offices can leverage real estate analytics:


Data analytics provide significant insights into the existing trends in real estate investment. Locations can be evaluated based on factors like traffic congestions, school ratings, quality of life, and crime rates. Moreover, real estate data can aid in assessing how lucrative a location will be when it comes to occupancy prices, average rental income, and even the ROI of the area. 

Being able to zero in on the most optimal locations swiftly lets Indian family offices remain one step ahead of the competition in seeking rental properties. It also saves them the hassle of conducting prolonged searches via traditional research approaches. 


Whether a family office is interested in either selling or buying, price optimization is critical for building wealth in real estate. Indian family offices need to comprehend the market they are operating within to make the best possible pricing decisions. 

Quicker and More Precise Appraisals 

Acquiring an appraisal is very significant before purchasing or selling an investment property. Real estate data analytics offers a lot of details about sales for comparable properties in the same area. Investment property analysis makes it effortless for valuators to deliver price estimations swiftly to family offices. 

Commercial Trends 

Commercial real estate investment is generally more large-scale and complex as compared to residential property investment. Thus, investing profitably in the commercial property needs detailed and comprehensive real estate data analytics on consumer trends. It will help family offices make a more informed decision. 

Competition Analysis 

Real estate data analytics can help family offices assess the performance of their competitors who are in the real estate industry. Which firms are believed to be the most trustworthy? Who is selling the most? What consumer rating do they have? What kind of promotional techniques are they using? Family offices can also make use of data analytics for profits, sales figures, and customer reviews to evaluate their performance.

Tenant Targeting 

Using predictive real estate data analytics, family offices can help decide who their tenants will be in the following years. Data analysis makes it more effortless for family offices to target their marketing properly. 

Real estate markets are believed to be unstable, complex, and always in charge. Thus, Indian family offices would benefit from real estate data analytics to make intelligent investment selections and increase their return on investment. Thanks to data analysis, family offices can accurately assess where and when to invest, as well as decide the appropriate value of properties. 

For more CRE industry insights and data research do Contact us.

Lease Rental Discounting in Commercial Real Estate Lending – What it is and Why it is Growing in India

The market for real estate is massive in India. This industry is believed to generate the second-highest employment, after the agriculture domain. It is also estimated that this industry will acquire more non-resident Indian (NRI) investment, both short-term as well as on a long-term basis. Among the metropolitan cities, Bengaluru is projected to be the most preferred property destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun.


With a growing market, top banks in India are introducing Lease Rental Discounting (LRD) for commercial real estate firms in India. Let’s take a look at what LRD is and why it has become popular in India:

What is Lease Rental Discounting (LRD)?

Lease Rental Discounting (LRD) is a tool that is used to get loans sanctioned from banks by making use of rental receipts as collateral. The bank will inspect the long-term cash flow and offer the loan based on the same amount. The loan is then owed by the rents promised. 

Variables Considered by Bank When Offering Loan

To assess if you’re eligible for Lease Rental Discounting (LRD), the bank will examine numerous elements which comprise of:

• Worth of your property
• Your position to repay
• Other possessions you own
• Liabilities that could happen

How does Lease Rental Discounting (LRD) Run?

Lease Rental Discounting (LRD) loans function on the basis of rental properties being owed a fixed amount of rent. Tenants agree to a lease agreement with the owner of the property. This arrangement commands a regular payment, referred to as rent. The property owner can make use of rental receipts that are made for the lease period as collateral while requesting a loan. 

This procedure is streamlined as rent and is dispatched directly to the bank as EMI instead of reaching the owner. Every bank has its own condition when it comes to the amount of the loan against property. But, on average, you can acquire up to 70% of the property estimate in the loan amount. 

Why is it Growing in India?

The popularity for Lease Rental Discounting (LRD) has been rising in India because the price at which commercial property developers borrow loans making use of rental receipts from lease contracts as collateral – have gone as low as 6.5% below this decade due to the surplus liquidity with banks that faced issues in dispatching credit during the Covid-19 pandemic. 

Overall, the rates for Lease Rental Discounting (LRD) have dropped up to 200 bases points in the last 18-24 months. According to real estate fund managers and investment bankers of India, for the first time in several years, they have gone beneath the capitalization (cap) rate in the nation. 

Benefits of Lease Rental Discounting (LRD)

Expansion of Business

This property owner can go ahead and further invest in property by making use of the loan sanction from Lease Rental Discounting (LRD). 

Tax Benefits 

Tax deductions are available by possessing additional property. 

Balanced Cash Outflow

The borrower can gain from a balanced cash flow as EMIs can be repaid using the rent money payable by tenants. The money received in a loan offers additional revenue via investments. 

Low Capital Expenditure 

The capital acquired from the bank loan significantly aids in decreasing personal expenditure when spending on more businesses or properties. 

For more CRE industry insights and data research do Contact us.

5 Major Forces that will Drive Commercial Real Estate Industry in India in 2022

In 2021, there has been a tremendous development in residential and commercial real estate in India. The market was already growing as the requirement for residential apartments and plots rose post nationwide lockdown. The property rates observed a huge increase in demand and prices per square foot.

commercial real estate

Apart from commercial areas that tailor to the daily or weekly needs of the residents, the corporate world has started to convey interest in mounting operations, thanks to enhancements in connectivity and anticipated economic development.

We could witness further liquidity transferred into commercial real estate this year. It is believed that the year 2022 will see a growing surge for appropriate workspaces, freehold commercial and residential properties, and new concepts that will increase returns for investors. 

As we go deeper into 2022, here are a couple of forces that will push the commercial real estate industry in India.

Residential Property Market is Expected to Rise

After an extended duration of dropping and then stabilizing, residential property rates are possibly expected to begin rising again. Approximately 5% capital value growth has been estimated for the residential property segment in India in 2022. 

Several of the supply and demand-side factors are taken into consideration and evaluated over the last decade. This drive is projected to continue in 2022 as potential homebuyers’ preferences for larger residences, improved facilities, and lucrative pricing will help seal the deals. 

Foreign Investment is Estimated to Push this Sector

Foreign Direct Investments (FDI) will continue to be a significant development driver, and the same is valid in the case of the real estate players as well. Indian real estate has managed to draw a huge amount of foreign moolah, particularly in the residential market. With RERA assuring transparency and laws permitting 100% FDI in construction, Indian real estate is observing pointed investment infusions from NRIs. 

Property Rates Projected to Rise

In 2020, approximately 1.38 lakh housing units were sold. When you pit it against the previous peak in 2014, this was considered to be a rock bottom of 60%. Nevertheless, between January and September 2021, 1.45 lakh units were sold. There was a 5% surge in sales in 2020. 

Increase in Demand for Co-working Spaces

In 2020, there was significant growth in office closures and a swift shift in ubiquitous remote employment globally. This trend carried on in 2021. However, as the vaccines started rolling out, people slowly returned to their workplaces. Thanks to the pandemic, firms have had to spend time and money investing in digital abilities to let employees work from home. 

Businesses are seeking new working approaches while allowing workplace flexibility to make sure that profitability balances well with employee well-being. The most obvious development has been the surge of a hybrid workforce across an array of workspace choices, including flexible offices. 

Growing Demand for Data Centers

The massive digital push generated by the COVID-19 pandemic has been lucrative for data centers which could still offer an approximate 15% rental yield. Firms started to modify their digital infrastructure to cater to the new work environment instantly after India went into lockdown due to the pandemic, thereby leading to a 25-35% increase in data center capacity. 

The year 2022 is also believed to observe an increase in SCO (shop-cum-office-space) concept development. These SCO plots will assist entrepreneurs to develop their business concepts by owning a commercial space at moderately placed prices with advanced amenities. Sharp investors can witness the benefits of a well-equipped setting that backs retail or office in a favorable market. Mixed-use commercial spaces will help investors in expanding their risk in the investment portfolio by making the most of the new evolving idea. 

For more CRE industry insights and data research do Contact us.

Andheri West – What makes it the preferred office and housing destination for developers, investors and homebuyers?

Andheri_ West

Andheri West has witnessed a phenomenal Real Estate transformation over the last 15-20 years. Starting with the Mumbai International Airport and Mumbai suburban local train station to Mumbai’s first Metro Line, two upcoming metro lines and upcoming Coastal Freeway. All these infrastructure developments shall help connect Andheri to all other parts of Mumbai – Northern suburbs, South Mumbai and Eastern Suburbs. Andheri West is one of the prime examples among Mumbai City Micro-markets which boasts an amazing mix of Office buildings, Shopping Centers, Retail High Streets and High-end Residential. Andheri West’s population is approx. 400,000 with about 100,000 households having an average monthly income of INR ~150,000. The housing market in Andheri West has always been buoyant and continues to witness the same trends given consistent new job creation and quality housing development. In 2019 and 2020, Andheri West witnessed housing sales of ~2,200 units and ~1,500 units respectively.


The total commercial office stock at Andheri West stands at about 4.5Mn sqft. However, there are a greater number of Grade B office buildings in Andheri West compared to Grade A buildings. Given the lack of new Grade A office supply in Andheri West, secondary (older) office sales market has been more active compared to the primary office sales market among investors. The offices market in Andheri West has historically been an investor driven market and we foresee the same trend to continue. Andheri West Offices Capital Values appreciated by 15% in the last 5 years alongside rental yield of approx. ~7%, giving the investor a handsome annual return of ~10% per year. We strongly believe investors will prefer investing in new Grade A buildings compared to older supply. Five new Grade A commercial office buildings are under various stages of construction, totalling to approx. 900,000 sqft. In the past, both occupiers and investors have shown preference for offices sizes up to 2,000 sqft carpet area, primarily because the key occupier sectors have been BFSI, Media & Entertainment, CAs, Lawyers, etc.

Contrary to common belief that Bandra-Khar Linking road is the most active High Street in Mumbai, we would like to differ in opinion. We believe High-Streets of Andheri West have a wider spread not only in terms of size but also in terms of number and quality of retailers. Andheri West High-Streets can offer you everything from clothing to electronics, from jewellery to automobiles, from F&B to fashion accessories. Given the thick housing market, most private and PSU Bank have multiple bank branches and ATMs in Andheri West. Similar to the office asset, the high-streets in Andheri West have offered handsome annual returns of ~12% to its investors.

Related Article: BKC displaced Nariman Point as Mumbai’s CBD! Read on to know why BKC won’t be dethroned in the next 5-7 years.

Covid-19 has only augmented the need for mixed developments and self-sustained micro-markets with all asset types including offices, retail, housing, hospitality, healthcare, education etc. More and more people want to reduce their commute time, Work from Home and aspire to reside in vicinity of all possible recreation choices.  We believe Andheri West is one of the best micro-markets in Mumbai that offers all the above to not only home buyers but also to office commuters. To summarize, solid existing & upcoming infrastructure, robust housing demand, significant presence of high-end Retailer brands in Malls and High-Streets and growing office market, makes Andheri West one of the most attractive real estate investment markets for long-term investors.

For more CRE industry insights and data research do contact us

The ‘Mumbai’s Next CBD’ Debate Settled


BKC displaced Nariman Point as Mumbai’s CBD! Read on to know why BKC won’t be dethroned in the next 5-7 years.

Bandra Kurla Complex (BKC) has witnessed a phenomenal transformation over the last 20 years. The State Government set the ball rolling by appointing MMRDA as the special planning authority to develop BKC (Bandra Kurla Complex) as an alternative to the erstwhile CBD (Central Business District) – Nariman Point.

After initial reluctance, some of the Private and PSU Banks and companies shifted their headquarters to BKC. The National Stock Exchange opened its headquarters in BKC in 2001. Soon after, developers realized the potential and picked up land parcels in the region to launch multiple Grade A+ commercial projects. The total stock at BKC stands at about 18 Mn sqft as on year-end 2020. Diamond Bourses (~2 Mn sqft) opened its doors in year 2010. As of today, some of these Grade A+ commercial projects command the highest rent in the country for office space.

BKC currently houses some of the biggest Indian and International businesses including Amazon, Netflix, GIA, Bank of America, GIC, Google, Novartis, Pfizer, Wework, Kotak Bank, National Stock Exchange, SEBI, ONGC etc. These occupiers employ more than 200,000 people who commute to BKC daily, fuelling the growth of social infrastructure such as restaurants, gymkhanas, schools, hotels, luxury housing projects etc. Reliance shall move its headquarters to Jio World Centre, a 7Mn sqft convention centre which is expected to house office spaces, luxury mall, hotels, a performing theatre, convention centre etc.

One of the most well-connected suburbs of Mumbai city, BKC is also the epicentre of most of the major existing and upcoming infrastructure projects – Mumbai Highways, upcoming Metro lines, upcoming Bullet train project, SCLR, Bandra-Worli Sealink, upcoming Coastal freeway etc. Such a central location advantage with convenient connectivity to Northern suburbs, South Mumbai and Eastern Suburbs gives Bandra a big edge over any other micro-market. BKC is also surrounded by prime residential localities such as Bandra West, Khar West, Santacruz West on the West and Chembur, Wadala and Vikhroli on the East. Existing physical Infrastructure makes it easier for residents in these localities to easily commute to BKC. Nearly 85% of all senior employees at BKC reside in these neighbouring suburbs.

We foresee further development in and around Bandra Kurla Complex not only for office complexes but for retail malls, cinemas and hotels over the next 5-7 years. Around 4-5 Mn sqft more Grade A+ commercial office projects are planned which will generate about 50,000 new jobs in BKC over the next 5-7 years. Till then, we can comfortably shelve the case file of ‘CBD of Mumbai’ with a seal of BKC on it.

For more CRE industry insights and data research do contact us

L&T Seawoods rents out 52,391 sqft to Fleet Management for record rent of Rs 95 per sqft per month in August 2017…

Fleet Management has taken 52,391 sqft built-up area in L&T Seawoods Grand Central, Navi Mumbai in first week of August 2017. Fleet Management will be paying Rs95 per sqft per month at an annual pay-out of Rs 6 crore to the landlord, L&T Seawoods for 5 year lease term. The lock-in period for tenant is 3 years while the landlord is locked in for the entire 5 year lease term. Additionally, tenant has to pay 8 months security deposit with additional tranche of security deposit at time of rental escalation after 36 months to match the prevailing rental. Tenant will be facing escalation of 15% after 36 months. Tenant gets 34 parking lots which would be approx. 1 car park per 1500 sqft.

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Watson Pharma leases 1.05 lakhs sqft in L & T Seawoods Grand Central, Navi Mumbai at a Record rent of Rs 95 per sqft per month. Fleet Management also leased 52,391 sqft in the same building at 95 Rs per sqft per Month in Aug 2017

Watson Pharma has leased 1,05,397 sqft built-up area in L & T Seawoods Grand Central, Tower 2, Navi Mumbai in first week of September 2017. Watson Pharma will be paying Rs 95 per sqft per month at an annual pay-out of Rs 12 crore to the landlord, L & T Seawoods for 10-year lease term. The tenant has negotiated 6-month rent free period for fit-outs. The lock-in period for tenant is 5 years while the landlord is locked in for the entire lease term. Additionally, tenant has to pay 6 months security deposit with additional tranches of security deposits at time of rental escalations to match the prevailing rental. Tenant will be facing escalation of 18.7% after 36 months. Further, Watson Pharma’s parent Teva is expected to rent an additional space of around 28,000 sqft built-up area in the same tower.

Featured in: Business Standard

Continue reading “Watson Pharma leases 1.05 lakhs sqft in L & T Seawoods Grand Central, Navi Mumbai at a Record rent of Rs 95 per sqft per month. Fleet Management also leased 52,391 sqft in the same building at 95 Rs per sqft per Month in Aug 2017”

Crèches / Day-care Centres open up across all major commercial centres in Mumbai

As per the Maternity Benefits (Amendment) Act, 2017, every commercial office establishment having fifty or more employees shall be mandated to have a crèche facility / Day-care centre within such distance as may be prescribed, either separately or along with common facilities. Further notifications on distance, location etc. of such day care centres are expected soon.

Featured in: Business Standard

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Co-Working spaces on the rise in BKC, Mumbai.

After Wework, Quest Office, Awfis leases 24k sqft in BKC at MG or 42% revenue share.

Awfis, a co-working office space provider leased 23,648 sqft in Crescenzo, a commercial office building in Bandra Kurla Complex in 1 st week of August 2017. Awfis will be paying higher of minimum guaranteed initial rent of Rs 125 per sqft per month or 42% revenue share to the landlord DKJ Shelters. IDFC was the previous occupant at the said premises. Awfis negotiated 3 months’ rent-free period in the 60 months lease term to complete fit-outs in the leased premises at its own expense. The lease rent will increase by 9.6% to Rs 137 per sqft per month after 1 year. Additionally, the tenant has to pay common area maintenance charges which are currently estimated at Rs 10 per sqft.

Featured in: Business Standard

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