Key Points
The delay in replacement of Special Economic Zones (SEZ) Act 2005 with Development (Enterprise and Services) Hubs Bill, 2022, is impacting the rental collection of large office parks as corporates are hesitant in leasing space at SEZ parks, industry experts said..
According to a report by ICICI securities, since January 2023, global macro headwinds in the form of rising interest rates and tech MNC hiring slowdown have led to a slowdown in large leasing decisions for now.. Further, delayed implementation of the DESH Bill along with fresh exit notices for FY24 by a few large tenants in January-March 2023 period has dampened the mood further..
The Bill is critical for occupiers in the SEZ zones as they would be looking for some clarity in cases of expiring leases, while developers may have to deal with rising vacancies in case of further lag..
Any form of clarity on Bill movement and specific clauses will help occupiers plan future leases while allowing developers to think about the future course of action to sustain occupancies," said Anshuman Magazine, CEO, India, South-East Asia, Middle East & Africa, CBRE...
