India has currently evolved to be one of the most important countries in terms of the great opportunities that it provides for business activities and investments. While many other countries have gone through economic turmoil over the last few years, India has shown considerable stability together with a sustained potential to enjoy growth in a number of sectors including real estate. In fact, India has seen a major economic growth in recent times with statistics reporting a 7.4% rise by the end of 2015. This is encouraging more people to come and invest in Indian real estate market for better returns.
Residential Real Estate
When it comes to residential real estate, it is true that the previous year did not see as much developments as was previously expected. However, the good thing is that there has been considerable rise in sales figures in numerous cities like Bangalore, Mumbai and Hyderabad. There has been some reduction in launches in Mumbai which has lowered the inventory to some extent. Various types of developers’ initiative schemes, such as attractive deal terms along with lowered interest rates from RBI have helped to attract investors and fence-sitters. While the disparity between demand and supply is still high and the amount of unsold inventory all around the country is still huge, the figures have certainly improved for many cities like Pune, Mumbai, Hyderabad and Bangalore. The year 2016 is believed to usher in a new stage when a marked upward growth trajectory can be seen.
Commercial Real Estate
For the year 2015, the overall office space absorption of India was calculated at 35 million square feet which was the second highest in India’s history after 2011. The global financial meltdown that occurred a few years ago led to lowered rent rates and this was taken advantage of by the corporate houses. Although pan-India vacancy figures stand at about 16%, the realistic figures for vacancy actually stand for about 8% to 9%. Figures for total vacancy are not necessarily relevant for the corporate real estate occupiers. This is so because the majority of these companies do not take into consideration the Grade-A buildings that are located in places with strategic disadvantages or connectivity issues. They may also have been strata-sold or that they no more fit the requirements of Grade-A properties.
Cities like Bangalore, Pune, Chennai and Hyderabad have a vacancy rate of only 5% to 10%, which has now led to a growing need for proper commercial real estate venues to accommodate the demand for them. Many developers are showing less interest in working on commercial projects as it is often difficult for them to get substantial returns from out of them. However, in the recent times there has been a major rise in the rents in various cities all across India. This was particularly noticeable in SBDs (secondary business districts) as well as certain PBDs (peripheral business districts) of the Tier 1 cities rather than in established CBDs (central business districts) in different parts of the country.
Author Bio:-
Amy Jackson is a freelance writer specializing in blog posts, press releases and web content for online businesses and she has used her years of experience in understanding the changing trends in Real Estate business and other industries. She is currently writing articles on many upcoming apartments like Luxury condominiums in Yeshwanthpur for sale, luxury flats for sale in CV Raman Nagar, luxury flats for sale in Bangalore and more