Residential sales between January and June exceeded 150,000 units, surpassing sales reported in same period last year by 4 per cent.
Both sales and new launches of residential real estate could reach a ten-year high in 2023, touching or even exceeding the 300,000-unit mark, a report compiled by real estate consultancy CBRE said.
In the report titled “Indian Real Estate: Taking Giant Strides 2023 Mid Year Outlook”, CBRE said that the second half of the year is poised to attract a substantial number of first-time buyers, with fence-sitting end-users expected to make decisions during the festive season offers and discounts.
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The report said that both launches and sales are expected to be higher than the average of the last five years of 187,000 units and 184,000 units respectively.
Residential sales between January and June exceeded 150,000 units, surpassing sales reported in same period last year by 4 per cent.
The report also said that the mid-end category by true definition has gone beyond the 1 crore mark and strong demand is anticipated in the ‘sweet spot’ of1 – 1.5 crore price category. The premium and luxury segments are also expected to emerge as a sought-after investment avenue, particularly among HNIs and NRIs.
At the CII Realty 2023 conference, the CBRE-CII joint report also said that owing to the growing focus of developers and occupiers on sustainability, green-certified office stock in India has increased by over 36% since 2019 to about 342 million sq ft across top six cities in India.
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Bangalore, Delhi-NCR and Mumbai are among the top 3 cities spearheading green-compliant office spaces with a cumulative share of 68% of the total, green-certified office stock in India as of June 2023.
Certified green office stock also increased substantially, growing at a CAGR of 7.1% in the last five years.
As per the report, Bangalore tops all Indian cities with the highest green-compliant office stock, accounting for 30% of the total pan-India stock, followed by Delhi-NCR with 21% and Mumbai with 17% of the total certified office stock in India as of June ’23.
Global and domestic occupiers are prioritizing sustainability and have committed to targets with far-reaching impact.
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East Africa, CBRE, said, “The Indian real estate sector has demonstrated remarkable resilience in January-June 2023, despite a global economic slowdown, primarily fuelled by robust domestic demand. In line with most major economies globally, the rate hike cycle in India seems to have come to a halt, with the RBI maintaining the status quo in the past two reviews. We anticipate accelerated demand in modern, tech-enabled, and green-compliant spaces in the upcoming quarter. Additionally, we also expect alternative segments such as GCCs, data centres and flexible workspaces to play a pivotal role in bolstering real estate growth.”
Other highlights of the report include the fact that leasing activity across real estate assets withstood global headwinds in January-June 2023 and is expected to grow further in the July-December 2023 period. The office leasing activity was noted at about 26.4 million sq ft during January-June 2023, with Bangalore,Chennai and Delhi-NCR accounting for 60% of the overall leasing.
The report also said that the REITs market in India is anticipated to get more diversified with the listing of India’s first retail REIT earlier in 2023. Besides, the market is expected to witness the listing of India’s fourth office sector REIT in the upcoming quarters.
By the end of 2023, the total data centre stock in India is expected to increase by about 35% annually, touching 1,048 MW, with a planned supply of about 170 MW in the second half of the year.
