Indian real estate sector witness growth across segments
Indian real estate sector is seeing a encouraging growth across assets class with returning confidence in the market. While, corporate occupies and institutions investors are seen actively investing and leasing office space in the country. . Residential and retail market is seeing fresh lease of life with sales and investments making a comeback.
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.