Biggest Reasons Behind Recovery of Indian Real Estate And Future Expectations

By Admin
News

The Real Estate Sector of India is now on the right track with a speedy recovery, there are lots of reasons behind it. Here we are putting forward some facts & data to prove it, so read this blog attentively.

The real estate sector of India has observed a b recovery in the 3rd quarter of 2021 as the economy began to rise after the severe second wave of the Covid19. Both residential and commercial developments have staged an outstanding performance, ignite by numerous factors.

What are the driving factors for the real estate sector?

Historical low-interest rates on home loan
Affordable residential property
Improving economic condition and rising employment
High saving during the pandemic
High wealth creation in the market

Housing sales
Office leasing
Outlook
Conclusion

Housing sales

124%+ on-year hike in top 7 Indian real estate markets: (According to the survey of JLL India)
92% on-year rise in top real estate markets of India: (According to the survey of Knight Frank India)
21% rise in the launches in residential property in Delhi NCR, Bangalore, and Mumbai (luxury & affordable segments)

City	Q3	Q2	% Share
Mumbai	-	279	39%
Bengaluru	-	137	19%
NCR-Delhi	76	136	19%
Hyderabad	-	106	15%
Chennai	235	63	9%
Others	305	-	-
Grand Total	616	721	100%

Office leasing

12.5 million sq. ft. transactions, up 168% on-year: (According to the survey of Knight Frank India)
11.9 million sq ft new office space completion, up 67% on year
Bengaluru, Pune, and Hyderabad account for 73% of new ready for possessions: (According to the survey of Knight Frank India)
5.85 million sq. ft. net office absorption, up 48% sequentially and 8%, on-year: (According to the survey of JLL India)
10.9 million sq. ft. new ready for a possession; rentals remain rangebound: (According to the survey of JLL India)
Vacancy opportunities rise to 16.4% from the previous 15.8% in June 2021: (According to the survey of JLL India)

Outlook

The residential property market of India is expected to see many new launches in the festive season
Builders’ SOP (Standard Operating Procedure), affordable interest rates to attract home buyers
Rising vaccination drive, lower infections cases may encourage more activity in office leasing
The robust performance of the IT sector, b hiring shows potential for the office space segment.

Conclusion

As real estate investors continue to re-plan, rearrange and reconsider investment strategies, demand is bound to go up, as buying a property has become very significant once again. In the last quarter of this years and whole 2022 sentiment for the residential space remains more positive than the commercial segment. We can see noticeable improvements in newer developments, and a tech-enabled approach which could well transform the industry in the long term.