The Indian real estate sector, which had been stagnant for a while, is now showing signs of hope. This upswing is being propelled by an increase in demand and significant infrastructural developments. Additionally, the positive economic forecast and upbeat attitudes of investors and buyers are further driving the market’s growth. With the current optimistic outlook, the momentum that emerged after the pandemic-induced slowdown is only gaining momentum. This favorable situation makes it an opportune time to invest in India’s real estate sector.
Residential properties- safest investment opportunity
Residential properties created a buzz in the real estate market in 2022. As per a property developer, depending on the demand impetus in the nine months of 2022, the sale of residential properties in the best seven cities of India have exceeded the set record in 2014.
India’s residential property profits from the rising longing for house ownership as aspiring buyers have realized that housing property produces more return over a period, proving a safe investment option. A rise in demand for roomy living spaces and green apartment plots and housing units has caught the attention of real estate developers. Additionally, there has been a rise in demand for commercial undertakings in the country, which has further led to an increased need for co-working spaces, warehouses, IT spaces, and facilities.
Commercial properties- a blooming investment opportunity
Investing in India’s commercial real estate sector is advantageous as it offers excellent returns on investment and the potential to generate additional revenue. Recently, there has been a positive trend in the price appreciation of commercial properties. With an increase in economic activity and the return of employees to their workplaces, there is a rise in demand for commercial leasing. Consequently, investors across the country are considering investing in Grade A commercial properties located in select areas to enjoy significant growth.
According to a real estate consultancy firm, the commercial segment has witnessed the highest leasing activity in seven quarters during the third quarter of 2022. Quarterly investments, which were at pre-pandemic levels, have grown by 6% and are now advancing at a year-on-year growth rate of 29%.
Thus, it proves that it is the best phase to be a part of the commercial property market- whether office, warehouse, or retail with more and more new projects on the point of being launched and the stalled pandemic projects reaching end.
Office leasing has reached its peak
Over the last three quarters, there has been an increase in office leasing, primarily among IT and retail companies. Additionally, there has been a growing demand for office space from other essential sectors, such as engineering, automobile, BFSI, manufacturing, and co-working spaces.
According to a real estate consultancy agency, the top metro cities of India have witnessed a 61% increase in total office leasing in the second quarter of 2022, compared to the previous quarter.
Retail space- an excellent investment solution
India’s retail property market is optimistic, with retailers showing renewed confidence and preparing for growth. Tier II and III cities are becoming popular in retail as local and international brands are expanding rapidly. In the first half of 2022, Pune, Bangalore, Delhi, Chennai, and Hyderabad accounted for more than 70% of retail leasing undertaking, according to a report. Investing in retail real estate is currently attractive due to high rental values and price enhancements, making it the most profitable investment option.
Real estate investment- a perfect option to grow your wealth
Because of the booming real estate sector, property prices are rising, which helps build equity. As a result, investing in real estate is a wise decision for long-term investments, as it offers a consistent income stream through rentals. Moreover, real estate investments provide exceptional returns and tax benefits.
Given the positive outlook for the real estate sector and its growth prospects, now is an opportune time to invest in India’s real estate market. The favorable conditions in the market are encouraging for buyers and investors, particularly for those who value sensible investments.
Furthermore, the growth momentum is expected to continue into the next year. For those seeking long-term value appreciation rather than immediate returns, it would be wise to explore projects and properties in locations that are expected to become India’s next premier urban destinations.