Good news for the Indian real estate market, a recent report by a real estate firm shows that the sector has witnessed an encouraging growth across all the assets class in the period from January to June 2018. While investment in corporate and educational segment increase a lot with more office leasing activity, residential and retail property market also shown a steep growth with investments from many home buyers.
According to the report published by JLL India, a total investment of Rs 24,011 crores was recorded for the January – June 2018 period. Out of this investment, IT & Commercial sector boasts a maximum share with Rs 13,151 Crores.
Ramesh Nair, Chairman CII Realty & Infrastructure Conclave and CEO & Country Head, JLL India, gave more insights on the report and said, “There has been a paradigm shift in the momentum of real estate witnessed in the first half of 2018. All aspects of the sector whether residential, retail, office, and investments, have seen a healthy increase in demand,”
The report says that the corporate leasing activity raised to 54% in H1 2018 as compared to last year same period. Companies leased around 8 million sqft more space, taking the total gross leasing activity to 24 million sqft in the current year. Cities like Bengaluru and NCR tops in the office leasing activity, as per the report.
Talking about the residential sector, the implementation of RERA has boosted the confidence of many home buyers resulting in an increase in investments too. “The H1 2018 was also significant in terms of sales velocity for the residential sector, which picked the pace, recording a rise of 25% year – on – year in H1 2018,” Report added.
As per many realty experts, in recent times there has been good demand for residential properties across all the major Tier 1 and Tier 2 cities.
In the retail sector, net absorption in H1 2018 has seen a rise of over 75% year – on – year (y-o-y) in the first half of 2018. Expert here says that the leasing activity from both international and domestic brands has increased manifolds, hence impacting the retail property market.
Overall, with many policy formulation and implementation the Indian real estate sector has become more regulated showing an upward trend.