In the realm of Indian real estate, the first half of 2023 witnessed a remarkable surge in residential sales, surpassing 150,000 units, marking a 4% increase from the previous year. These statistics are not mere numbers; they are the foundations of an exciting trend that is set to reshape the real estate landscape in the country. Let’s delve deeper into this real estate resurgence.
Residential Real Estate Outlook
According to a comprehensive report titled “Indian Real Estate: Taking Giant Strides 2023 Mid Year Outlook” by CBRE, a prominent real estate consultancy, both residential sales and new launches are on the verge of reaching a ten-year high in 2023. The report predicts that the number of units sold and launched could potentially touch, or even surpass, the remarkable milestone of 300,000 units.
Changing Dynamics in Residential Real Estate
The second half of the year is expected to witness a significant influx of first-time buyers, motivated by enticing festive season offers and discounts. This trend is poised to reshape the market dynamics. The report highlights that both new project launches and sales are anticipated to surpass the five-year average, which stands at 187,000 units and 184,000 units, respectively.
Emerging Market Segments
The mid-end category of residential real estate has transcended the 1 crore mark, indicating strong demand, particularly in the ‘sweet spot’ of the 1 – 1.5 crore price range. Additionally, the premium and luxury segments are also emerging as sought-after investment avenues, especially among High Net Worth Individuals (HNIs) and Non-Resident Indians (NRIs).
Green-Certified Office Spaces
Shifting our focus to the commercial real estate sector, the CBRE-CII joint report, presented at the CII Realty 2023 conference, reveals a growing emphasis on sustainability. Green-certified office spaces in India have witnessed a remarkable 36% increase since 2019, now accounting for approximately 342 million square feet across the top six cities.
Leading the Green Revolution
Among these cities, Bangalore, Delhi-NCR, and Mumbai stand as pioneers, commanding a cumulative share of 68% of the total green-certified office stock in India as of June 2023. The report also highlights substantial growth in certified green office stock, boasting a Compound Annual Growth Rate (CAGR) of 7.1% over the past five years.
Bangalore Leads the Charge
Bangalore takes the lead among all Indian cities in terms of green-compliant office stock, representing 30% of the total pan-India stock. Following closely, Delhi-NCR holds 21%, while Mumbai accounts for 17% of the certified office stock in India as of June 2023.
Sustainability as a Priority
The global and domestic occupiers in the Indian real estate market have made sustainability a top priority, committing to far-reaching sustainability targets. This shift towards eco-friendly practices is expected to drive further growth in the sector.
Future Predictions and Growth
Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East Africa, CBRE, stated, “The Indian real estate sector has displayed remarkable resilience in the first half of 2023, despite global economic challenges. We anticipate an increased demand for modern, tech-enabled, and green-compliant spaces in the coming quarter. Additionally, segments such as Global Capability Centers (GCCs), data centers, and flexible workspaces are expected to play a pivotal role in bolstering real estate growth.”
Office Leasing Activity
The report also highlights that leasing activity across real estate assets remained robust during January-June 2023 and is poised for further growth in the July-December 2023 period. Notably, office leasing activity reached approximately 26.4 million square feet during the first half of 2023, with Bangalore, Chennai, and Delhi-NCR accounting for 60% of the overall leasing.
REITs Market Expansion
The report sheds light on the expansion of the Real Estate Investment Trusts (REITs) market in India. With the listing of India’s first retail REIT in 2023, the market is expected to diversify further. Furthermore, the listing of India’s fourth office sector REIT is on the horizon.
Data Centers on the Rise
By the end of 2023, India’s total data center capacity is projected to increase by about 35% annually, reaching a substantial 1,048 megawatts. A planned supply of approximately 170 megawatts in the second half of the year further underscores the growth potential in this sector.
In conclusion, the Indian real estate sector is not just recovering; it is thriving and evolving. With a strong focus on sustainability and a surge in residential and commercial real estate activity, the future of India’s real estate market looks promising and vibrant. Investors, developers, and occupiers are set to benefit from these exciting developments on the horizon.
Opulnz Abode: Pioneering Premium Real Estate Consulting
Opulnz Abode, a renowned name in the realm of premium real estate consultancy, wholeheartedly endorses this rising trend in the Indian real estate market. With years of expertise and a keen eye for emerging opportunities, Opulnz Abode recognizes the immense potential that lies within the sector. The shift towards sustainability, coupled with the surge in residential sales and the growth of green-certified office spaces, aligns perfectly with Opulnz Abode’s commitment to providing clients with the most cutting-edge and sustainable real estate options. As a premium real estate consultant, Opulnz Abode stands ready to guide clients towards making informed decisions in this dynamic and promising market. With Opulnz Abode as your partner, you can be assured of accessing the finest properties that align with your aspirations and values, ensuring that you are not just part of this trend but at the forefront of it.
Tags: Residential Real Estate, Commercial Real Estate, Office Spaces, Real Estate, OpulnzAbode