The Indian real estate industry is on the cusp of a major transformation. A clutch of tough regulations and the drop in black money and interest rates are set to propel the sector to greater heights.
In the recent past, analysts have pointed to the expansion of large real estate firms across major cities in India. It is pointed out that there is now a pan-India presence among these firms whose operating model has shifted from sales to a lease and maintenance
The main reason for this changing trend is attributed to rapid growth in services sectors such as IT/ITeS, Banking, Financial services and Insurance (BFSI) and telecom, rising demand for office space from Multinational Corporation (MNCs), particularly in Tier 2 cities
According to analysts the notable trends are in Mumbai, NCR and Bengaluru accounting for 60 per cent of total office space demand in India as of 2017. The office space absorption in 2016 across the top eight cities amounted to 34 million square feet (msf) with Bengaluru recording the highest net absorption during the year. Business activities are also noted as shifting from Central Business District (CBDs) to Special Business District (SBDs) of Tier 1 to Tier 2 cities.
“The level of maturity among (real estate) developers and investors has improved substantially compared to a decade ago,” Anuj Puri, Chairman & Country Head JLL India, was quoted as saying.