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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