6 KEY TRENDS IN COMMERCIAL REAL ESTATE

In India, the real estate sector generates the maximum amount of employment for the people, second to the agricultural sector. This employment generated helps in the growth of the Indian economy & its GDP.

Investing in real Estate in Bangalore is one of the most booming real estate trends. Fortunately, the real estate sector has been growing over the years now. It is well known around the world that Indians are staunch buyers of gold and property as a traditional method of accumulating and growing wealth. This mindset has resulted in huge demand for property and real estate in a country like India. It is not a well-known fact, that price per square foot area of land is always on the upswing but this has not reduced the enthusiasm among the Indians to buy more property Indians believe that due to the ever-growing Indian population there will always be a huge demand for real estate. This blog will walk you through the real estate trends in India in 2022.

Booming Demand

This happens to be one of the most popular trends in real estate. There is a growing demand for land spaces due to growing corporates in India. The large IT hubs and digitization of the Indian economy have led to rising demands for data centres. According to Savills India, real estate demand for data centres is expected to increase by 15-18 million sq. ft. by 2025. It is a fact that India is well known over the world as a country of villages. 60% of Indians still live in villages.

Moreover, there is a huge migration of the population from small towns and villages in search of jobs and better facilities. This has led to the demand for residential properties which has surged due to increased urbanization and rising household income. India is among the top appreciating housing markets internationally. Organized retail real estate stock is expected to increase by 28% to 82 million sq. ft. by 2023.

The rising economic conditions of Indians and better business opportunity has led to the opening of more shopping malls, restaurants, showrooms as well as offices and warehouses. Since the pandemic, hospitality companies have been planning for a huge expansion of their spaces.

India’s commercial space is one of the most well-organized markets in the Asia-Pacific region, and with the introduction of the Real Estate Investment Trust (REIT) structure, it will become more efficient. Few large players with a pan-India presence dominate the market.

Rapid growth in the service sector is driving demand. Increase in demand for commercial space due to robust business growth and optimism in the Indian economy, especially in tier-II cities. It is the most preferred asset class in real estate by investors over the last few years and has attracted about 80% of the total investment made in the sector.

Wonderful Investment opportunity

Many foreign investors have invested in the real estate sector of India, as the Indian economy is one of the fastest-growing hubs for real estate, IT, and the economy. As per ICRA estimates, Indian firms are expected to raise >Rs. 3.5 trillion (US$ 48 billion) through infrastructure and real estate investment trusts in 2022, as compared with raised funds worth US$ 29 billion to date. Private market investor, Blackstone, which has significantly invested in the Indian real estate sector (worth Rs. 3.8 lakh crore (US$ 50 billion) is seeking to invest an additional Rs. 1.7 lakh crore (US$ 22 billion) by 2030. This investment opportunity is surely one of the best real estate trends for luxury apartments in Bangalore.

Government economic policies

The Indian real estate sector went through a roller coaster ride and was struggling with unsold inventory, low buyers’ confidence, delays in projects, and negative cash flows due to covid-19 pandemic since 2020. However, several growths promoting regulatory developments and initiatives announced over the last two years, are helping to revive the sector, and are expected to pave the way for strong sector growth in the future. These government economic policies stand out to be one of the most popular real estate trends in India.

The government has implemented several policies to support the sector. The government has also relaxed FDI norms which may translate into more fund inflow. Real estate is the fourth largest sector in terms of FDI inflows and this fiscal the sector witnessed strong inflows. Government support and implementation of various policies lead to transparency and boosted confidence, especially of foreign investors.

The Government of India along with various state governments has taken regulatory reforms and initiatives that were aimed at driving transparency, governance, and financial discipline required to boost and support the development of the real estate sector. A few of such policies and initiatives are the Real Estate (Regulation and Development) Act, of 2016

• Benami Transactions Act
• 100% deduction in profits for affordable housing construction
• Interest subsidy for first-time home buyers
• Change in arbitration norms for construction companies
• Approval of the Real Estate Investment Trust (REIT)platform by SEBI.
• PPP (Public-Private Partnership) Scheme
• Credit Link Subsidy Scheme (CLSS) on home loans under PMAY
• Approval of 100% FDI via automatic route.
• Introduction of GST

Rise In Renting Force and Fragmentary Possession in Business

Organizations are extending their workplaces to ease representatives after the pandemic. Data innovation’s renting energy is on the ascent and considering the employment in the year and a half, the gradual interest for office spaces will be almost 1.08 million square meters.
With the rising interest in office spaces, the partial proprietorship market is blasting with money management, just 5 lakh rupees to work with the improvement of office spaces and defeat the current interest.

Warehousing Area to be a Help

The pandemic saw an ascent in the Web-based business industry with the expansion popular for quick satisfaction and ideal dissemination. This prompted the development of city-explicit nearby warehousing touchpoints. With the expansion in the Online business industry, the Online business warehousing share is supposed to ascend to 36% by the monetary year 2023.

Generally, warehousing exchanges are projected to develop at a compound yearly development of 20% by 2023. This happens to be another sector where the real estate trends in India in 2022 fit in well.

Movement/progress from urban communities to rural areas:

One of the most recent trends in real estate is moving from urban areas to rural areas. This is due to the clog in the inward pieces of the urban communities. Individuals are presently changing from downtown areas to the edges. Suburbia with open spaces and green environmental elements offer better feasible ways of life and consistently draw in home purchasers.

In addition, property costs in suburbia frequently rival central area costs. This is a motivator for individuals to progress from urban communities to rural areas and a pattern will be a critical driver for the thriving of land for the following 3-5 years.

Apartment builders in Bangalore like the DSR infrastructure are popularly known to match the real estate trends in India by delivering masterpieces like DSR Vertex & Apex that make a beautiful synchronisation between the commercial & residential layouts.