India Presents Great Opportunities For Investment: WTCA Chair John E Drew
The World Trade Centers Association (WTCA) Chair John E. Drew on Friday said that there are great opportunities for real estate investments in India during a media roundtable in Bengaluru.
“India is experiencing rapid economic growth, coupled with a surging demand for commercial infrastructure and global business connectivity. As a result, our network has grown phenomenally in the country during the past decade. Today, we have our second largest membership cluster here with 40 Members representing most of India’s major cities and contributing to India’s sustainable development,” said Drew.
The World Trade Centers Association (WTCA) comprises over 300 interconnected businesses and organisations spanning nearly 100 countries. Through WTC Operations, it represents almost 100 countries/regions, with over 300 current WTC Licensees globally.
India currently holds the fourth-highest number of WTC licenses, following Europe, North America and China. Nonetheless, Vineet Verma, Managing Director of WTC Bengaluru, Kochi and Chennai, and Director of Brigade Hospitality, opined that India has the potential to become the leading WTC license holder worldwide.
“India is going to be the leader in terms of World Trade Center license holders across the globe.” – Vineet Verma, MD, WTC Bengaluru, Kochi & Chennai and Director, Brigade Hospitality
In the near future, WTCA wants to increase the number of licenses in India to 50 from 40, which are held by eight to nine entities. Internationally, the brand plans to elevate the global count from 300 to 500 within the next 10-15 years.
How is WTCA funded: WTCA is funded through two primary channels. Firstly, revenue is generated through the sale of licenses, which are priced at USD 300,000 each. Secondly, members contribute annual dues, which also contribute to the organisation's funding. These funds support various initiatives and programs undertaken by WTCA, including meetings and regional advisory councils. These councils, established in regions such as Asia, Latin America, North America, Europe and the Middle East, provide guidance on budget allocation and program development. Additionally, revenue generated helps facilitate events and activities, such as regional meetings, which may eventually lead to larger-scale gatherings like general assemblies. Overall, this funding structure supports WTCA's global operations and initiatives.
Because of the COVID-19 pandemic, the real estate industry, particularly in office spaces area, has experienced a significant downturn as remote work became prevalent. India, historically not recognised as a dominant player in office spaces, faced similar challenges. The funding crunch among startups in the recent years have also meant that office-going workforce have moved to non-premium properties or have embraced work-from-home completely. This meant that WTC was also impacted in India.
However, Nirupa Shankar, Joint Managing Director, Brigade Enterprises, during the media roundtable for WTC's Global Business Forum announcement, said that India is doing relatively well compared to its European and American counterparts. “This year has not been the best year but the sector is seeing decade highs. We have never seen this kind of an upsurge before in the last 10 years. Office is the only segment that is not there yet, but still doing relatively well.”
However, there's now a notable shift as companies advocate for employees to return to offices and the demand for green and sustainable workspaces is on the rise. And WTC said it is seeing a lot of demand.
“Many companies that previously moved out of premium office spaces are now expressing interest in returning, albeit in a more managed environment. This emerging trend is causing a surge in demand for coworking, managed or flexible office spaces. At our own World Trade Center, we're witnessing this shift firsthand,” said WTC Bengaluru's Vineet Verma.
In 2024, there is projected to be a 20-22 per cent increase in net absorption of office spaces, reaching an estimated 45-47 million square feet. This growth aligns with the anticipated higher supply in 2023 compared to the pre-pandemic average of 2017-2019, according to a JLL report.
“With half of our building occupied by Amazon, their steadfast commitment has been reassuring. While adjustments in square footage per employee may be under consideration, there hasn't been any significant exodus from the premises. On the contrary, we're experiencing a surge in inquiries. For instance, our administrative office on the fourth floor, which offers incubation and coworking spaces, is facing a shortage of space due to the influx of inquiries for managed offices,” he added.
This year, it is anticipated that approximately 1.5 lakh seats will be leased within the flexible workspace segment. This continued demand for flexible spaces reflects its integral role in occupier strategies, which increasingly integrate both traditional and on-demand flexible spaces to optimise portfolios and enhance employee experiences.
