Real estate News
Anuj Puri, Chairman of ANAROCK Group, said that the forecast for the Indian CRE sector is cloudy with chances of sunshine. A global recession would have several direct and considerable repercussions on the Indian commercial office market, he said. Harsh Vardhan Patodia, President, CREDAI, said that despite the macroeconomic challenges, the outlook for commercial real estate in 2023 is still positive.
Experts said that investments can give maximum returns when you choose the right option and invest accordingly. They said that people have preferred gold and real estate for long term investments. Jitendra PS Solanki, a SEBI registered tax and investment expert, said that while gold is a hedge against inflation, real estate is a growth asset.
Major real estate markets across the Asia Pacific continued to perform well in the third quarter of 2022, despite the loss of some growth momentum Difficult macroeconomic conditions marked by high inflation and rising interest rates hampered the growth momentum. Investments in the commercial office sector In India saw a revival during January-September 2022.
Real estate developers closed at least 68 land deals accounting for 1,656 acres in the top 8 cities in the first nine months of 2022. Of the 68 land deals closed in 2022 (Jan-Sept.), nearly 40 deals consisting of 590+ acres are proposed for residential development. Over 147 acres in 4 separate deals are earmarked for industrial & logistics parks and warehousing.
Real estate consultant Colliers India expects absorption of office space to hit an all-time high in the 2022 calendar year. The previous high was seen in 2019 at 44.8 million square feet. Gross absorption does not include lease renewals, pre-commitments and deals where only a letter of intent has been signed.
The RBI cut interest rates from 5.15 per cent when the pandemic hit to as low as 4 per cent, which then boosted real estate assets. Declining interest rates were a key reason for the massive housing demand surge in the past two years. It is widely expected the RBI may hike rates by 50 basis points in the monetary policy review meeting during September 28-30.