Hyderabad: Despite Covid-19 pandemic, the residential sector, particularly affordable housing demand, has remained constant in India as there is end-user demand. India is one of the few countries where there has been steady demand in the residential sector for many years, as the economy has been growing and there is a young population, according to an expert.
Anshuman Magazine, chairman & CEO, CBRE India, South East Asia, Middle East & Africa, told Telangana Today, “We are still a developing country and we will see growth in the coming years as well. Many people will join the workforce and there will be migration from rural to urban regions, which will continue to drive residential demand. There is a large supply and demand gap due to the population that the nation has. However, due to the growing aspirations, people will move up the value chain in the residential sector, and there will be demand for apartments, villas and other forms of residential properties.”
In the Covid times, sales are on-going for the fully constructed properties, and where there is a known builder, the sales for even the under-construction properties are stable.
There is a lot of support from the government to drive demand. It has become cheaper to own a house now, with interest rates coming down. The prices have also become competitive. All of this will help pick up demand in the residential sector, he observes.
India has been among the few nations that has seen healthy office space demand. About 180 million sq ft of office space has been added in the last four years. Of all the markets, Hyderabad has been a good performer relatively, compared to larger cities such as Bengaluru, Mumbai and the National Capital Region. In the last couple of years, Hyderabad has seen a huge activity in the office space, surprising the country’s commercial real estate market.
Magazine added, “The corporate activity in Hyderabad has surpassed Mumbai and Delhi. I am optimistic about Hyderabad’s potential in real estate, more so in the office space. Hyderabad has done exceptionally well because of its talent pool, backed by educational institutions. Proactive State government and relatively better infrastructure has helped the city do better in the commercial space. Another advantage is that Hyderabad has created a comfort level for multinationals. Presence of large companies is helping it attract more companies to set up bases or expand their presence further. The city has already created that critical mass of companies. Social infrastructure in addition to quality retail space will add to its advantage further.”
India will see some slowdown in 2020, but the country will still do better than many other countries in the commercial space. Majority of the demand in office space is coming from Business Process Outsourcing, primarily from American and European companies. Due to Covid, many countries will increase outsourcing and offshore activity, which will benefit India. As India has proven itself as a platform to deliver technologies to the world, global firms will stay interested to outsource from and expand in India. Cost advantage and skilled manpower will act in favour of India, that will further boost the office market.
Magazine noted that the retail space in India will remain impacted due to the pandemic. But, interestingly, e-commerce has really picked up, which is boosting the logistics sector. There is an uptick in warehousing and logistics demand in the last few months, as online transactions are up. Also, India is seeing fresh demand in the data centre space, which will augur well for the nation in the coming years.
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