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Stable outlook for office, retail real estate segments as projected by ICRA

Credit rating agency ICRA on Monday said it expects the stance for commercial real estate sector to remain steady during the current fiscal year.

ICRA expects the outlook of commercial real estate, both of the office segment and the retail malls segment to be stable for FY2023. The revision in the outlook for retail malls from negative to stable factors in the improvement in the rental incomes backed by contractual escalations in rentals and strong rebound in trading density,” as mentioned in a statement released.

Credit rating agency ICRA on Monday said it expects the stance for commercial real estate sector to remain steady during the current fiscal year.

ICRA noted that the outlook for office space continues to be stable backed by resumption of in-office plans and extensive hiring in the tech sector.

“The footfalls are expected to reach pre-Covid levels in FY2023, however, the average spend per footfall is likely to witness some moderation when compared to FY2021-FY022,” said Mathew Kurian Eranat, Vice President and Co-Group Head, ICRA.

The rental income of malls in FY2023 is expected to surpass FY2020 levels by around 4-6 per cent.

Ankur Maheshwari

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Ankur Maheshwari

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