Indian real estate- What to expect in the near future

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Several studies and reports have indicated that things look highly positive for the Indian real estate sector in the near future. Reports state that rapidly increasing urbanization may drive considerable growth for the Indian real estate sector in future along with sparking widespread development of infrastructure. There is growing demand in the country for commercial and residential units alike and this will only grow with the development of quality infrastructure, townships, residential complexes and shopping malls across India.

The office space market is witnessing steady growth with co-working sectors achieving 9% of overall growth in the first half of 2018 and Bangalore is expected to be the biggest gainer in terms of new office space additions followed by Mumbai. In terms of overall real estate supply, more than 60% of the total supply levels are expected to come from Hyderabad, Delhi-NCR and Bangalore. The retail sector is witnessing decent growth and the current completed retail space of 77 million sq. ft. in the country could increase to 103 million sq. ft. by the year 2022.

These are factors that will naturally drive residential real estate growth in the future as per experts. Key retail growth hubs are Delhi-NCR and Hyderabad in tandem with Mumbai and Kolkata. Affordable housing has been a key growth driver for the residential realty sector as well. New launches surpassed 40, 000 units for the second quarter of 2018 for the very first time after a period of 8 quarters. Bangalore and Mumbai are witnessing good growth with the maximum number of new residential project launches seen in these markets. The highest number of launches are in the price segment within Rs. 40 lakhs.

Even warehousing and logistics are driving real estate growth in India. Investments are expected to touch almost Rs. 50, 000 crore in warehousing by the year 2020. Student housing is another growing real estate segment that may generate handsome returns. Growth in this sector is expected to be around 38% (CAGR) till the year 2020.

 

Resident Editor