






{"id":27539,"date":"2022-03-22T13:21:44","date_gmt":"2022-03-22T06:21:44","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=27539"},"modified":"2022-03-22T13:28:38","modified_gmt":"2022-03-22T06:28:38","slug":"the-redemption-of-indias-residential-and-commercial-real-estate","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/the-redemption-of-indias-residential-and-commercial-real-estate\/","title":{"rendered":"The redemption of India&#8217;s residential and commercial real estate"},"content":{"rendered":"<p><span class=\"NormalTextRun BCX0 SCXW192681248\">The sector is expected to reach USD1 trillion market size by 2030 and will make up for 13 percent of the country\u2019s <\/span><span class=\"NormalTextRun BCX0 SCXW192681248\">GDP<\/span><span class=\"NormalTextRun BCX0 SCXW192681248\"> by 2025<\/span><\/p>\n<figure id=\"attachment_27540\" aria-describedby=\"caption-attachment-27540\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-27540 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/03\/shutterstock_1036002985.jpg\" alt=\"\" width=\"1000\" height=\"653\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/03\/shutterstock_1036002985.jpg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/03\/shutterstock_1036002985-400x261.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/03\/shutterstock_1036002985-600x392.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/03\/shutterstock_1036002985-768x502.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-27540\" class=\"wp-caption-text\">The real estate index has surged by 75 percent in the past year, making it the second-best performing index. SasinTipchai\/Shutterstock<\/figcaption><\/figure>\n<p><span data-contrast=\"auto\">Since the start of 2022, industry analysts reveal that India\u2019s real estate market has been experiencing a \u201chealthy\u201d rise in demand and they expect the momentum to continue for the rest of the year, reported <\/span><a href=\"https:\/\/timesofindia.indiatimes.com\/blogs\/voices\/real-estate-market-to-touch-new-heights-in-2022\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">The Times of India<\/span><\/a><span data-contrast=\"auto\">.<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">At present, real estate is already the third-biggest industry to drive economic growth and 2022 is just the beginning. The local government\u2019s premier policy think tank NITI Aayog forecasts the real estate sector to reach USD1 trillion market size by 2030 and will make up for 13 percent of the country\u2019s GDP by 2025.\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">A year of recuperation for residential real estate<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Yet, 2022 isn\u2019t the first time the sector has shown signs of recuperation during these past couple of years. The growing demand for housing started in the last quarter of 2020 though this increase hit a snag due to the second wave of the pandemic.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The government\u2019s vaccination drives, along with the introduction of low interest rates, duty waivers in some states, appealing propositions, and reasonable market prices, enabled the market to bounce back stronger in the third quarter of 2021.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In fact, a report published by JLL uncovered that, during this period, residential sales skyrocketed by 65 percent on a sequential basis.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The real estate index has also surged by 75 percent in the past year, making it the second-best performing index and surpassing the standard index Nifty50.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In 2022, the residential sector is predicted to witness growth of roughly five percent in capital value. The sales momentum is also expected to increase as potential homebuyers continue to look for bigger houses, better amenities, and reasonable offers.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Housing Development Finance Corporation (HDFC) Ltd. Chairman Deepak Parekh agreed stating that the recent rise in demand came from both first-time homebuyers and those looking to upgrade to larger homes or move to other locations, reported <\/span><a href=\"https:\/\/www.thehindu.com\/business\/indian-real-estate-market-is-on-an-upward-cycle-parekh\/article65060370.ece\"><span data-contrast=\"none\">The Hindu.<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u201cHome prices have stayed fairly stable, low interest rates have helped, and the real estate sector has already self-corrected and recovered from its previous down-cycle. In short, the Indian real estate market is on an upward cycle, which bodes well for us,\u201d he added.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Sunteck Realty Ltd, the premier developer of luxury homes and Best Developer (Mumbai) at <\/span><a href=\"https:\/\/www.asiapropertyawards.com\/en\/2021-propertyguru-asia-property-awards-india-give-honour-to-mumbais-finest-real-estate\/\"><span data-contrast=\"none\">PropertyGuru Asia Property Awards (India)<\/span><\/a><span data-contrast=\"auto\">, will be among those that will benefit from this uptick. In the past year, <\/span><a href=\"https:\/\/www.livemint.com\/companies\/news\/sunteck-realty-acquires-110-acres-to-enter-second-home-market-11634530691025.html\"><span data-contrast=\"none\">Mint<\/span><\/a><span data-contrast=\"auto\"> reported that the firm has acquired 110 acres in the Mumbai Metropolitan Region to penetrate the second-home market segment. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The luxury home developer also told <\/span><a href=\"https:\/\/www.moneycontrol.com\/news\/business\/real-estate\/sunteck-realty-to-develop-10-million-sq-ft-township-in-mumbai-7472741.html\"><span data-contrast=\"none\">Money Control<\/span><\/a><span data-contrast=\"auto\"> that they plan on investing INR25 million (USD327,140)\u00a0to INR30 million in the next seven to eight years to develop a luxury township in Mumbai.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In January, <\/span><a href=\"https:\/\/www.financialexpress.com\/industry\/sunteck-realty-to-launch-seven-projects-with-rs-22000-crore-revenue-potential-in-next-5-8-years\/2407807\/\"><span data-contrast=\"none\">Financial Express<\/span><\/a><span data-contrast=\"auto\"> added that Sunteck Realty will also be launching seven projects with a projected revenue of\u00a0INR220 million in five to eight years.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">Commercial real estate to stabilise in 2022<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">With over <\/span><a href=\"https:\/\/ourworldindata.org\/covid-vaccinations?country=OWID_WRL\"><span data-contrast=\"none\">58.8 percent of the population fully vaccinated<\/span><\/a><span data-contrast=\"auto\">, businesses have been in full swing and employees have started going back to work, which meant that the resumption of offices will help stabilise rents this year.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">JLL\u2019s head of private wealth group in India, Vishal Ahuja, told the <\/span><a href=\"https:\/\/www.business-standard.com\/article\/pf\/good-time-to-invest-in-commercial-realty-as-firms-bring-employees-to-office-122021800575_1.html\"><span data-contrast=\"none\">Business Standard<\/span><\/a><span data-contrast=\"auto\">, that the apprehension towards the sector in the onslaught of the outbreak has diminished as employees can now return to the office.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">From October to December 2021, the office sector witnessed 11.56 million square feet net absorption, an 86 percent increase quarter-on-quarter and the highest in the past eight quarters. Net absorption rose by 26 percent year-on-year for the half-year period of July to December 2021.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In Gujarat, for instance, the commercial sector has <\/span><a href=\"https:\/\/timesofindia.indiatimes.com\/city\/ahmedabad\/gujarat-commercial-real-estate-market-gains-momentum\/articleshow\/89717669.cms\"><span data-contrast=\"none\">gained traction since 2021<\/span><\/a><span data-contrast=\"auto\"> as the number of startups has risen rapidly, as businesses across varying sectors look to expand, and as\u00a0yuppies relocate there for better career prospects.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Data from the Gujarat Real Estate Regulatory Authority (GRERA) noted that registrations for new commercial projects in the state grew by 24 percent from 2021 to 2022 as opposed to 171 from 2020 to 2021.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Knight Frank India Executive Director Balbir Singh Khalsa said: \u201cAs industries and corporates are bullish on expansion plans, the need for commercial property has gone up. This includes office space, as well as retail and showroom spaces. The only way retail growth is underlined is to expand the geographical footprint of the brand. Moreover, as metro cities expand with new town planning schemes in place, the need for residential and commercial real estate in new areas goes hand-in-hand.\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><i><span data-contrast=\"none\">Seen any award-worthy residential, commercial, or industrial projects in India? Nominate them for the 3rd edition of the PropertyGuru Asia Property Awards (India) on or before 23 September 2022. To know more, visit <\/span><\/i><\/b><a href=\"https:\/\/www.asiapropertyawards.com\/en\/award\/india\/\"><b><i><span data-contrast=\"none\">AsiaPropertyAwards.com\/Award\/India\/<\/span><\/i><\/b><\/a><b><i><span data-contrast=\"none\">.<\/span><\/i><\/b><span data-contrast=\"none\">\u00a0\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:270}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"none\">Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: <\/span><\/i><a href=\"mailto:gynen@propertyguru.com\"><i><span data-contrast=\"none\">gynen@propertyguru.com<\/span><\/i><\/a><i><span data-contrast=\"none\">.<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:270}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The sector is expected to reach USD1 trillion market size by 2030 and will make up for 13 percent of the country\u2019s GDP by 2025<\/p>\n","protected":false},"author":9,"featured_media":27540,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[101,92],"tags":[220,464,216,219,638,512],"class_list":["post-27539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-property-awards","category-news","tag-commercial","tag-economy","tag-india","tag-offices","tag-real-estate","tag-residential","news_country-india","news_author-gynen-kyra-toriano"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The redemption of India&#039;s residential and commercial real estate | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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