Brick by Brick: The reason behind realty sector’s robust recovery and what’s ahead – The Economic Times

Clipped from: https://economictimes.indiatimes.com/industry/services/property-/-cstruction/brick-by-brick-the-reason-behind-realty-sectors-robust-recovery-whats-ahead/articleshow/86906060.cmsSynopsis

Both residential and commercial property segments have staged a solid performance, helped by multiple factors. Analysts expect ​the housing market to see many new launches in this festive season.

The real estate sector witnessed robust recovery in the July-September quarter as the economy began to pick up after the severe second wave of the pandemic. Both residential and commercial property segments have staged a solid performance, helped by multiple factors. Kailash Babar reports

What is driving the real estate sector?

  • Record low interest rates
  • Affordable property prices
  • Improving economy, employment
  • High savings during pandemic
  • Record wealth creation in markets

Housing sales

  • 124%-plus on-year jump in top 7 Indian property markets:JLLIndia
  • 92% on-year rise in top 8 cities: Knight Frank India
  • 21% RISE IN LAUNCHES most in Bengaluru, Mumbai and Delhi-NCR; launches in affordable, mid-income segments

Office leasing

  • 12.5 million sq ft transactions, up 168% on-year: Knight Frank India
  • 11.9 million sq ft new office space completion, up 67% on year
  • Bengaluru, Pune and Hyderabad account for 73% of new completions: Knight Frank India
  • 5.85 million sq ft net office absorption, up 48% sequentially and 8%, on-year: JLL India
  • 10.9 million sq ft new completion; rentals remain rangebound: JLL India
  • Vacancy levels rise to 16.4% from 15.8% in June quarter: JLL India

Outlook

  • Housing market likely to see many new launches in festive season
  • Developer sops, low interest rates to attract buyers
  • Rising vaccination, lower infections may encourage more activity in office leasing
  • Healthy performance of IT sector, strong hiring bodes well for the office segment

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