The good times continue to roll in the real estate sector. According to a report by valuation and consulting firm, RBSA Advisors the country’s real estate sector is expected to grow by 15% from $ 60 billion in 2010 to $1,000 billion by 2030, and contribute 13% of India’s GDP by 2025. The organised retail real estate sector is expected to increase by 28% to 82 million square feet by 2023.
Ansh Batra, Director, Buniyad Group, said that the momentum that had picked up post-pandemic seems only to be getting stronger.
“Despite the slight increase in the prices and a marginal hike in home loan interest rates the real estate sector has been thriving on positive buyers’ sentiments,” Batra said.
Read More:-1 USD Equals 80.07 INR — Rupee Falls To Another Historic Low Against Dollar
In Delhi-NCR, there is huge demand for housing spanning across all segments, the report said. Sanjay Sharma, director, SKA Group said that among the factors that have boosted real estate in NCR is the all-round improvement in connectivity both road and metro. “The construction of Jewar Airport has acted as a major catalyst. These have enabled the developers to announce new projects farther away from the city and for the buyers it has significantly cut down their commuting time.”
“Besides, since these are newly launched projects, they offer benefits of superior construction and better much improved facilities,” he said.
Read More:-SBI WhatsApp service unveiled for customers: Know how to register and check bank account balance
The sentiments are equally positive in the commercial segment. Big retail companies are expanding and looking for new spaces. New projects are getting launched. Projects which were stalled due to the pandemic are nearer to completion. The commercial realty segment, both office and retail is thriving. Shop-cum-Offices demand has also taken a big boost, the report said, adding that prices of commercial properties are showing good appreciation.
“In fact, it has been estimated that on average commercial properties comprising both offices and retail spaces can post returns anywhere between six to nine percent,” Ajendra Singh, VP, Sales & Marketing, Spectrum Metro, said.
According to a Knight Frank report, 25 million square feet have been leased between January and June this year, translating to a 107 per cent jump, year-on-year. Bengaluru and NCR have led the way, accounting for 7.7 million square feet and 4.1 million square feet of these transactions, respectively.
An interesting aspect of the post-pandemic realty scene has been the surge in luxury apartments, plots, villas and independent floors.
For the Indian retail market, the projections are equally positive and is estimated to reach $1.1-1.3 trillion by 2025, the report said. In 2019-20 it was valued at $0.7 trillion, which makes for a Compounded Annual Growth Rate (CAGR) of 9-11%.
Factors like socio-demographic and boost in economic activities such as urbanisation, income growth and rise in nuclear families are driving the Indian retail market.
The organised retail real estate sector is expected to increase by 28% to 82 million square feet by 2023.
“At present an investment in retail make for the best choice as the rental value and price appreciation are high,” Amit Jain, Director, Mahagun Group, said.
