COLLIERS HAS MOVED TO THE FOREFRONT OF THE INDUSTRY

Having set up Synergy Property Development Services in early 2003 till today, what will you count as your key challenges and achievements as an entrepreneur?

I am a first-generation entrepreneur and setting up my company at a very early age, I had to ensure growth at every stage, including financial, headcount, and profitability year on year. I am blessed with a team of highly competent leaders who have entrusted me with their careers and have been part of my journey for over two decades.

In 2008, the world's largest real estate private equity firm completed the due diligence and invested 35% equity in Synergy Property Development Services (Synergy), making it one of their first strategic investments in the country. This is one of the proudest moments of my career, as this reflects transparency and the highest level of integrity with which I have navigated the business.

Over these years, along with my team, I have successfully created a truly global organization embracing global best practices, which corporate and investor Clients have acknowledged as a benchmark in the industry today.

Creating a brand from scratch with a profound vision that would breathe quality and innovation, being recognized for its unparalleled service levels among Clients, and offering Project Management and Turnkey solutions has been a significant milestone in my professional and personal life.

I have encountered challenges of various natures during my entrepreneurial journey, which has helped me be agile and adaptive in my business outlook. Real estate prices are affected by changes in the broader economy, including inflation, interest rates, and the stock market. In addition to these factors, demonetization, regulatory changes (RERA), global pandemic, liquidity crunch, and, most lately, COVID have tested my leadership.

I am incredibly proud of our results achieved despite these unforeseen roadblocks. Staying ahead of the curve during challenging times requires a proactive and strategic approach to business. I have focused on continuous learning and adapting to change, focusing on customer needs, leveraging technology, and maintaining financial stability.

What are the key developments that have created a paradigm shift in the real estate sector in the last few years?

The real estate sector has gone through a paradigm shift post Covid-19 led by changing preferences of occupiers & homebuyers. The stakeholders in the real estate sector are repositioning themselves to meet these changing needs to stay relevant in the new normal. There are some critical changes redefining the industry.

While the hybrid working mode was expected to be largely pandemic-centric, it continues to persist. The pandemic has catalysed the need for space management and brought a hybrid working model to the centre stage, benefiting occupiers through office space rationalization.

Companies now prefer distributed and decentralized workspaces over one large regional branch. Such offices can be either in peripheral areas of tier I cities or major tier II cities. Rising demand for satellite offices will eventually lead to a rise in demand for flex spaces. The hybrid working model will likely pivot office market dynamics in the next few years.

Further, as stakeholders recognize the urgency of addressing carbon emissions and focusing on health and wellness, there is increasing importance and vigilance towards ESG (Environmental, Social, and Governance) compliant properties. This has also led to a growing interest in green financing and investments in environmentally responsible real estate projects.

The COVID-19 pandemic has also accelerated technology adoption in the real estate sector. Technology is now penetrating all aspects of the real estate sector, from planning and design to construction techniques to building facilities and property management. Moreover, prop-tech usage is also expected to grow significantly over the next few years to facilitate smoother transactions, bring in transparency and improve efficiency.

What have been the latest developments in Colliers and the current key engagements and verticals for the company?

In the last 3-4 years, we have successfully added multiple services to our current portfolio and expanded the purview of services we offer to our clientele. So far, the journey has been enriching with increased client engagements, new service line offerings, and excellent career growth opportunities for our team of professionals.

Our collective efforts have helped Colliers become one of the fastest-growing professional services companies in the APAC region. Our focused growth, driven by opportunities in Capital Markets & Investment Services, Office services, Project Management, and other verticals, has helped us foster 2X relationships with our clients.

Our SME experts in Warehousing & Logistics, Flexi-spaces, Data Centres, ESG, and turnkey solutions have created a niche in the market and continue to provide exceptional services to Developer, Investor, and Occupier clients across the country. I am excited by the influx of talent that has become an integral part of our organization and tirelessly working to achieve our Enterprise 25 growth strategy.

What's your outlook for the Indian realty sector in the current global economic and geopolitical situation?

The current scenario in India is 'Cautiously Optimistic' amidst the global recessionary concerns and economic headwinds. Despite the challenges, the real estate sector will likely remain resilient during 2023, especially in the year's second half. While some subsectors, such as office, are seeing slower demand, ample opportunities in sectors such as industrial, alternate assets, etc., are likely to grab stakeholders' interest.

During Q1 2023, the office market saw about 10.1 msf of leasing, a 19% decline YoY. During 2023, about 35-38 msf of office leasing is expected in the country's top six cities, in an optimistic scenario, provided the impact of externalities fades away towards the end of the first half. Despite the looming global recessionary pressures, a polarization in office demand is expected in the prominent micro markets of the top six cities in India owing to the occupiers' inclination towards their established ecosystem.

The demand in the industrial and warehousing sector remained healthy in 2022. In 2023, demand from engineering and electronics companies will likely surge while the demand from 3PL players will likely remain intact. While E-commerce companies were rapidly growing during the pandemic, the sector observed sluggishness in 2022. Moreover, the need for faster deliveries is likely to drive the demand for micro-warehouses/dark stores, especially from Q-commerce players in the critical hubs of major cities.

Alternate assets like data centers, life sciences, senior housing, holiday homes, and student housing show signs of recovery on the institutional investments front. During 2023, we expect the investments' momentum to continue, where core assets like the office will continue to be a long-term bet for investors.

What is your vision for Colliers, and how do you plan to steer the strategic growth of the company in the coming years?

Over the past few years, Colliers has moved to the forefront of the industry, offering massive growth opportunities in diversified professional and investment management services globally. Our focus on creating value for Clients, Investors, and employees is crucial to our success. Being the first International Property Consulting firm in India, for 28 years, Colliers has delivered 20% annualized returns to our shareholders.

In 2021, Colliers established the enterprise growth plan, an ambitious growth strategy to increase and grow our operations manifold. In 2022, Colliers globally invested a record US$ 1 billion in acquisitions to increase market share, expand and diversify services and extend our geographic reach.

In India, Colliers has performed and delivered results, surpassing expectations. Our Project Management vertical and office services have nearly doubled their revenues, and other service lines continue to grow exceptionally.

Over the last few years, we have focused on recruiting market-leading experts to create one of the finest professional services teams in the country; I am confident we will continue to deliver exceptional results. As part of our growth strategy, in the next few years, we will focus on expanding and diversifying our services and extending our geographic reach in the region, aligned with our global growth story.

SYNERGY'S SUCCESS STORY WILL ALWAYS BE CLOSE TO MY HEART. THIS WAS REITERATED IN 2019 WHEN COLLIERS COMPLETED THE ACQUISITION OF A CONTROLLING STAKE IN SYNERGY, WHICH RESONATED WITH OUR CORE VALUES AND EXCELLENT TALENT NURTURED OVER THE YEARS.

MY VISION IS TO SCALE UP ORGANICALLY, SURPASS GROWTH TARGETS BY 2025, AND BE RECOGNIZED AS THE COUNTRY'S NO.1 REAL ESTATE AND INVESTMENT MANAGEMENT FIRM.