Home Urban Infrastructure News Steel & Metal Building News Indian real estate sector witness growth across segments

    Indian real estate sector witness growth across segments

    JLL India

    According to a recent report by JLL India, total investment in the real estate of the country for the January – June 2018 period was recorded at $3,616 million (Rs 24,011 crores), majority of which was in the IT & Commercial sector. Of the total investment , IT & Commercial sector attracted close to $2,000 million (Rs 13,151 Crores) in the same period.

    “There has been a paradigm shift in the momentum of real estate witnessed in the first half of 2018. All aspects of the sector – residential, retail, office and investments, have seen healthy increase in demand. What we note specifically is the quantum of this rise which has increased significantly, ushering a revival of the sector backed by strong fundamentals,” said Ramesh Nair, Chairman CII Realty & Infrastructure Conclave and CEO & Country Head, JLL India.

    The first half of 2018 also saw corporate leasing activity rise by a 54% in H1 2018 as compared to the same time last year. Companies leased around 8 million sq. ft more space as compared to same time last year taking the total gross space leased in the H1 2018 of the year to about 24 million sq ft. Cities that contributed the most to this growth were Bengaluru and NCR, with a share of 26% each in the gross leasing volumes during this period.

    “The leasing is at par with last year with strong demand from BFSI and IT sector. We are 100% leases,” said said RMZ MD (executive management) Thirumal Govindraj. The H1 2018 was also significant in terms of sales velocity for the residential sector, which picked pace, recording a rise of25% year – on – year in H1 2018. This can be attributed to two large factors, firstly returning buyers’ confidence on account of implementation of RERA in most states and stable capital values that have started to show an upward trend.

    “The intention of RERA is to make sure there is no delay. We are seeing good demand for residential properties across price points,” said Niranjan Hiranandani, president, NAREDCO and chairman of the Hiranandani group.

    The Indian retail market is also experiencing a new lease of life with interest from investors returning to the market.

    “We are see a growth in leasing activities from both international and domestic brands across all our malls,” said Suresh Singaravelu executive director retail, hospitality and business development, Prestige Group. The firm is building 3 mn across different cities.

    In the retail sector, net absorption in H1 2018 for retail space has seen a rise of over 75% year – on – year (y-o-y) recording a total absorption of 1.9 million square feet (msf) in the first half of 2018. According to industry experts, with policy and legislative changes such as RERA, Benami Property (Prohibition) Act and

    Bankruptcy and Insolvency Act, the sector has become more regulated and it is expected to bounce back.

    Info- https://realty.economictimes.


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