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After a generally bad run since demonetisation and the brake checks that the pandemic pulled off, Indian real estate finally seems to be on a sustained recovery path.
Zooming In
The sector has been witnessing a sort of paradigm shift over the past two years.Very quickly, while the Covid induced 'work from home' model reduced the demand for commercial spaces, it increased the demand for residential spaces and the shared economy to an extent.
Housing
📌 Along with that, the buying decisions now factor in adverse impact on income, 'thriftiness' caused by unforeseen emergencies, 'access to large green areas' and 'access to good healthcare'.
Also, Capital expenditure (Capex) of INR 5,43,559 crore is committed by governments combined, for affordable housing over the period 2020-25.
The commercial real estate (CRE) segment has witness a mixed bag period. Among dominant markets, Bengaluru, Chennai, and Delhi NCR recorded the highest recovery in the September 2021 quarter.
In a boost to CRE, SEBI lowered the minimum application value for Real Estate Investment Trusts (REITs) from INR 50,000 to INR 10,000 -15,000, making the market more accessible to small and retail investors.
Commercial (CRE)
📌 Information Technology (IT) remains the largest consumer of space during the quarter, occupying 34% of the space transacted.
Zooming Out