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Real Estate Outlook of INDIA

In last two years almost all sectors in world have seen a negative growth due to covid outbreak, real estate sector is not an exception. Although last few quarters in 2021 have been encouraging for the sector. As per the Knight Frank report titled ‘Real Estate Outlook 2022’, India’s realty sector is showing signs of healthy growth in 2022 with steady performance and quick revival. The real estate sector regained the buyer’s and investor’s trust and further picked up the growth momentum. In residential segment first three quarters of 2021 saw a Y-O-Y hike of 27% and 5% on supply and sale respectively. Whereas in commercial segment, office leasing activity saw 140% q-o-q growth in Q3 2021. In Asia Pacific, total demand for office was 80 million sq. ft. it came down by ~60% in 2020 and in 2021 it came back to 60 million sq. ft. In 2022, 2023 we are expecting a surge up to 80 million sq. ft, so it will reach the pre Covid level in 2023. This will contribute about 37% of total Asia pacific demand, in next 2-3 years India will maintain the same share. On an average we are delivering 35 million sq. ft office space a year, and in 2022 it is expected to grow by 25 %. So, on supply side we will be experiencing a surge to satisfy the demand.

Few of our top realty firms like Hirandani are collaborating with finance capitalists to invest three thousand crores rupees in Mumbai. This will help both the companies in improving their portfolio and valuation apart from profit from the business. Indian government has also shown signs of support towards infrastructure development. From the above examples we can see forecast the magnitude of growth that is going to occur in construction/real estate sector. So, although real estate investment has its own risk and downsides, but numbers are showing a green signal for the investors. Always do a risk assessment study before investing in any sector, so for real estate.

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