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Indian real estate on a growth path

Indian real estate on a growth path: a perspective for homebuyers in Hyderabad, 2022- part 1

This article is meant to highlight the strong indicators and reasons to show how Indian real estate has fared reasonably well since the outbreak of the pandemic.

Before we think of investing in Hyderabad’s real estate, we need to know how things have been faring at the country level.

The intent of this article is to showcase how and why Real Estate has proved to be one of the most resilient sectors in the Indian industries.

Once we have clarity on the Indian landscape, we can safely assume that the same logic applies to Hyderabad as well. This will also give a reason for home buyers a perspective on why serene and peaceful localities like Sainikpuri are just perfect for investment as well as for a superb living experience.

Let us now understand the bigger picture of how real estate in India has been faring, both residential and commercial.

The points mentioned below come from the real estate industry pundits and give us a good perspective. Real estate consulting firm CBRE has come out with a very enlightening report in early 2022 on the resilience of the Indian real estate sector. An India-level report allows us to see things clearly as it applies to Hyderabad as well.

Some of the key highlights that help us understand the Indian real estate trends are given below.

  • Leasing on the rise in flexible spaces will continue to rise in India
    • What are flexible spaces? Answer- All space operated by third-party flexible office operators, including traditional serviced offices as well as co-working space. Flexible spaces can be open-plan. It includes small enclosed offices, whole floors, and buildings
  • India remains strong position in the economy as well as promising growth projections across segments like office, industrial, and logistics (I&L), and residential segment
  • Strong and continued government focus on infrastructure development and industrial growth
  • Segments such as logistics and manufacturing will continue to grow in India
  • A greater focus on ESG will boost Indian real estate, and the overall economy. What is ESG? Answer: ESG stands for Environmental, Social, and Governance. ESG gives importance to non-financial parameters that impact the business. This is good for the overall quality of life at the country level. It is all about a greater focus on health & wellness. ESG drove real estate growth is committed to driving energy efficiencies and reducing the carbon footprint
  • I&L (Industrial & Logistics) sector will be a sunrise sector and will help the leasing segment of Indian real estate
  • Indian markets will further mature in alternative segments such as life sciences. This will drive more investment opportunities in India
  • More office space is as compared to 2022. Growth in demand for office space is over 13-14% as compared to 2021
  • Technology firms will lead the pack in leasing office space in 2022
  • Other industries that will take office space on lease in the times to come are: BFSI, engineering & manufacturing and life-sciences
  • Major cities like Bengaluru, Hyderabad, and Delhi-NCR will drive growth in 2022
  • Over 50 million sqft (5 crore sqft) of new office space will become available in 2022
  • This means that office space would grow at 4-5% annually
  • Physical offices have a future, and this is proved beyond an iota of doubt!
  • A hybrid working model with work from home coupled with an office option shall be there to stay. This means that office spaces will continue to retain their importance
  • There will be a great thrust on ‘Workplace strategies’ to improve productivity
  • Six technologies to drive the real estate sector in 2022 and beyond will be:
    • SaaS
    • Artificial Intelligence
    • Internet of Things
    • Robotic Process Automation
    • Virtual/Augmented Reality
    • Blockchain
  • Leasing in India will remain strong in 2022 and touching over 37 million sqft
  • Leasing will grow more than 20% on an annual basis in India in the years ahead
  • E-commerce and 3PL firms (third-party logistics) will continue to grow in India. This will further boost real estate growth
  • Macro-economic recovery will continue in India. Plus, online retail penetration will help in the macro-economic recovery
  • Next-gen logistics facilities will dominate the upcoming supply pipeline as warehouses will grow taller (vertical growth of buildings) in India
  • So, Warehousing spaces will rise further in 2022
  • Continued up-gradation / expansion opportunities will come up in tier-I cities
  • Newmarket penetration in lower-tier cities will happen
  • Local distribution networks in emerging logistics hubs will growth of warehouses
  • Over 35 million sqft (34 lac sqft) of new warehouses will become operational in 2022
  • Regionalization of supply chains across Asia Pacific countries will benefit alternative manufacturing hubs in India

Overall, the trends indicate a positive shift for real estate in India. With such strong indicators, investing in real estate becomes a safer and assured bet in India, and in particular, in Hyderabad!

“Extraordinary claims require extraordinary evidence.” .

– Carl Sagan

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To know more about “Real Estate Investment: A Perspective For Indian Investors & Home-Buyers [Part-I]Click here!

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