As the Indian real estate market shows signs of a returning stability, Bangalore, Chennai and Hyderabad have taken the lead in Commercial real estate. As Mumbai and Delhi NCR witness a rise in demand for Residential properties.
As the number of active cases went down and vaccination drives buckled up, the July-September quarter turned out exceptionally great for the real estate sector. What also helped attract more and more investors were the record low home loan interest rates and the various relieves provided by the government.
The top seven property markets of India alone recorded a 124% on-year jump in housing sales, the recorded sale was at 32,358 apartments as per the JLL India records, whereas Frank Data recorded a 122% rise in housing sales across 8 cities.
The pandemic truly changed the public’s mindset towards a lot of things, from prioritizing health to seeing the need for a home and stable income. It was these requirements, and the growing confidence of the investor in the real estate sector, led by the IT sector that drove the housing demands in this quarter.
Who were the largest contributors?
Mumbai has been leading in sales for over 5 consecutive quarters now, and we also saw Delhi NCR (National Capital Region) gain momentum, as both Mumbai and Delhi collectively accounted for one-fifth of the total sales. Following in their steps were Pune and Bangalore taking the lead.
Strong quarterly growth at 12.5 million sq ft was also recorded. According to some analysts, the total transaction of the eight markets mentioned above has also improved in this quarter and reached 83% (of the 2019 quarterly average).
Talking of recovery, it is worth noting how Delhi, Chennai, and Bangalore made the largest recoveries with transactions reaching 93%, 123%, and 112% respectively.
Commercial Real Estate and Office Sector
During the third quarter, we saw the IT sector take up 34% of transacted space. This transaction led to heightened demand for office spaces. We also saw nearly 23,500 coworking seats getting occupied, leading to higher demand in the CRE sector.
Bangalore, Pune, and Hyderabad saw the development of 73% new office spaces, with Bangalore leading here as well. Overall a 67% year growth was witnessed as 11.9 million sq ft was delivered during this quarter.
The Mumbai and NCR market also saw a rise in rental growth of office spaces. Mumbai has been leading in residential real estate since the vaccine drive kicked off. We also saw residential realtors push sales with spot discounts, finance deals, and stamp duty waivers.
As millennials move towards affordable and flexible rental housing options or settle down for comfort and family, they will be opting for good housing spaces with the convenience of work and good community. Talking of the changing market trends due to the pandemic, we have also been witnessing a rise in youngsters looking for homes in big cities as well, leading to a price hike.
The residential markets in Chennai, Hyderabad, and Kolkata have also seen prices increase marginally in this quarter. In terms of residential real estate, Hyderabad dominates the market in terms of making new launches.
Despite the covid cases in 2020, Hyderabad had dominated the real estate market by making a 76% increase in residential sales in q3 of 2020.
As the city offers great socio-economic infrastructure and has a knack for attracting the best investors from both, commercial and residential real estate sectors, real estate investments in Hyderabad have become very popular.
At this point, with the high paced technological advancement and opening market, investors with any budget can invest in this city and enjoy high returns. If you are considering Commercial or residential real estate investment options, this might be the best time for you, as from this point forward the prices and popularity will only be going up. Assetmonk is a GrowthTech platform that specializes in real estate. With a team of experienced investment advisors, Assetmonk prides itself on bringing world-class CRE investments to one platform in India. Our aim is to democratize the real estate market and make highly profitable properties available for individuals as well.
Experts think real estate is headed towards a steady recovery and revival in the sector.
As the demand for both residential and commercial real estate is rising, there might be a rise in the prices of the property as well.
The pandemic has played an essential role in raising the demand for properties in India, leading to a gradual rise in property value and overall prices.
JLL India has reported that the Indian real estate sector has attracted investments of worth $943 million in Q1 2022 which is 41 percent more compared to the previous quarter.
Real estate investing may be expensive. However, if you do it correctly, you might earn a sizeable chunk of passive income from rental as the property appreciates. That is why it is critical to comprehend the main terminology of real estate investment.
The RBI provides guidelines from time to time outlining the legislation and granting broad authority to NRIs to acquire certain immovable assets in India without needing additional approval from the RBI.
Financial markets enjoyed a wild journey in 2022, with sharp ups and downs in stock and cryptocurrency valuations. While real estate with fractional ownership has always been a solid basis in every good portfolio
This article gives an overview of real estate performance measurement. Property valuation is more difficult than other types of asset appraisal because it lacks specific published values.
With this report we can clearly observe a 2.5 fold jump in leasing office spaces in Delhi NCR region with in the first Quarter of 2022.
Institutional investments in Indian property investment reached 1.1 billion in Q1 2022, more than doubling from the same period last year.
As Property Prices Rise In India, The Real Estate Industry Needs Fractional Ownership Now More Than Ever
Across the country, prices are likely to rise by 10-15%. According to our poll, 65 percent of developers believe that prices would increase by 10%. The impact would be the greatest on the inexpensive housing market.
NRIs can transfer or sell commercial or residential properties in India that they have invested and bought or inherited to an Indian resident, PIO, or NRI. They must go through the RBI Rules.
You invest in real estate properties online in a more feasible way than you would if you were involved in traditional real estate investing, such as flipping houses or having the more typical physical presence of a real estate investor.
Real estate is the largest asset class. It is capital-intensive and reasonably accessible. As per Savills World Research, the valuation of global real estate at the end of 2017 got projected to be $280.6 trillion. Thus, accounting for more than 77 percent of the world’s wealth.
Determination of the economic value of a commercial real estate investment is called commercial property valuation. It examines the fair value or value at which an insightful purchaser voluntarily sells his commercial real estate property to an insightful buyer. Both participants have all of the necessary information, and neither is under any intention to sell or purchase. It is crucial to note that a property’s worth is not necessarily equivalent to its price.
The removal of the GO has gotten hailed by the Telangana Real Estate Developers Association (TREDA), which includes roughly 300 leading builders in the state. The removal of the Order would have little effect on market pricing in neighboring areas. TREDA also requested that the government create Sewerage Treatment Plans (STPs) to handle the drainage water.
Real estate investing is lucrative and it doesn’t require a significant amount of capital. While it is common to believe that the only way to invest in real estate is through direct property ownership, the truth is that numerous other options provide lucrative and consistent cash flow without the need to purchase a property and with less hassle.
Real estate investments have traditionally provided investors with a sense of security by allowing them to possess something concrete. However, it is quickly becoming a viable choice for diversifying investments, creating new income streams, and securing the future.
Regardless of well-intentioned recommendations from friends and relatives, NRIs should seek competent real estate guidance. Tenancy discussions, repairs, general monitoring, and the regular buy/sell dilemma must all be completed.
India is a multi-sectarian country, laws governing various issues such as devolution, inheritance, and so on are frequently founded on customary principles and practices relevant to numerous sects, in addition to codified laws.
Diversifying the portfolio is one way for investors to reduce the risk of a shattered nest egg. But, how do we diversify? You can do so through real estate investment.
Can NRIs invest in India real estate? Yes, NRIs can buy and sell an estate in India. NRI investments in India real estate are also a profitable option. But, how do NRIs get to invest in India real estate? Through foreign bank accounts? Or Indian bank accounts? There are crucial things NRI should be aware of before investing in any property in the country within the FEMA. They must abide by the RBI guidelines for NRI investment in real estate.
Property ownership is not always required for real estate investments. There are numerous other opportunities for investors to reap the benefits of real estate appreciation without having to shoulder the ongoing responsibilities of building maintenance. Real estate investing can be profitable.