Backed by positive economic fundamentals, healthy demand and quality supply infusion across sectors, India’s real estate sector is poised for strong growth in 2019.

  • Office – After a landmark 2018, the sector is looking forward to another strong year as new sources of demand emerge and quality supply enters the market.
  • Retail - Almost 10-12 million sq. ft. of supply is expected this year, even as experiential retail and omni-channel will continue to redefine the sector.
  • Industrial / Logistics – Close to 60 million sq. ft. of new space will be added till 2020; the share of grade A supply is expected to increase.
  • Residential – Sales and new launches expected to improve; affordable and mid segment to lead amidst government initiatives and developer realignment of product-mix.
  • Capital Markets – Appetite for greenfield might strengthen; core assets will also continue to be favoured; due diligence and counter-party credibility to come into sharper focus.

Economy

GDP Growth To Continue


  • India’s growth trajectory will be mapped by economic growth, consumption patterns, policy stimulus, inflation and government revenue stream
  • Ease of living, infrastructure development, improved public health and technological advancements to remain focus areas for the government to achieve long-term growth
  • Ease Of Doing Business ranking set to improve further; government’s target to enter the top 50 ranks by next year
 

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Office Sector

Evolving landlord occupier relationships to be the enablers of change


  • Workplace transformation will continue to evolve from experimentation to mainstream
  • Tech to put people at the centre of the workplace
  • Location is no longer everything - mobility is rewriting office demand
  • Core + Flexi workplace strategies to increase RE agility
 

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Retail Sector

Despite tightening of FDI norms, omnichannel to continue to reinvent retail formats


  • Demand diversification across brand categories to refine brand mix
  • Rising consumer expenditure on experiences to fuel experiential retail
  • Seamless integration of retail platforms to boost omnichannel expansions
 

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Logistics Sector

Strong demand, policy reformation and growing investor appetite to drive growth


  • Logistics supply chain to improve on the back of infrastructure creation
  • Despite policy tightening on FDI, e-commerce expected to hold strength
  • Consolidation among domestic and global players to deliver quality supply in the segment
  • Use of automation and AI to improve efficiencies
 

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Capital Markets

Greater due diligence to be the norm


  • NBFC consolidation imminent, due diligence to come into sharper focus
  • Core assets to have greater investor interest, appetite for equity as a source of funding likely to improve
  • Real Estate Investment Trusts (REITs) to formalize the funding mechanisms
 

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Residential Sector

Dynamics to continue to improve post structural policy reforms


  • Backed by government initiatives, affordable and mid-end housing to lead demand
  • Alternate asset classes such as co-living, student and senior housing to emerge
  • Quality supply infusion expected, unsold inventory set to decline
  • Consolidation and formalization of the sector expected; delivery capabilities and balance sheets of developers to come into sharper focus
 

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