Report Says: India’s Real Estate Sector Showing Signs Of Healthy Growth In 2022
As per the Knight Frank report titled ‘Real Estate Outlook 2022’, India’s realty sector is showing signs of healthy growth in 2022 with steady performance and quick revival. The real estate sector regained the buyer’s and investor’s trust and further picked up the growth momentum.
Residential segment - as per the Anarock report, between Jan - Sep 2021, the residential sector saw a hike of 27% in new supply than the full-year supply in 2020, and the sales were also up by 5%. The housing sector was quick to adopt digitalization and innovation and also witnessed a demand shift where offerings with best-in-class amenities became the most sought-after choice of buyers.
Commercial segment - as per the CBRE report, office leasing activity reached 13.5 million sq. ft. in Q3 2021 growing at about 140 percent q-o-q, showing healthy growth in commercial real estate.
India To Contribute 37% Of The APAC Office Space Demand
Bangalore is expected to absorb the maximum amount of office space in Asia Pacific, as India is expected to contribute to 37% of the total demand in 2022, Badal Yagnik, Managing Director - tenant representation, Cushman & Wakefield told a leading media house.
“In Asia Pacific, total demand for office was 80 million sq. ft. it came down to 30 msf in 2020 and in 2021 it came back to 60 msf. In 2022, we are expecting it to be 72 million sq. ft. and 2023 it will reach about 83 msf so it will reach the pre Covid level in 2023,” Yagnik said.
“In next 2-3 years India will maintain the 40% share. In India on an average 35 million sq. ft. is delivered. In 2021 it is 40 msf and in 2022 it is expected to be 46 msf. 25% of the new supply is already pre committed. We have an active 40 msf of demand and it will only grow up,” Yagnik said.
Hiranandani Considers JV Worth ₹3,000 Cr
Mumbai-based Realty major, Hiranandani Group and US-based private equity firm Blackstone Group’s joint venture, GreenBase, is trying to invest ₹3,000-crore for its 3 million sq. ft. project in Thane. The joint platform is looking to build and expand its portfolio by at least 15 million sq. ft. taking it to more than 20 million sq. ft. in the next five years. The company is targeting a valuation of between ₹5,500 crore and ₹6,000 crore for its portfolio once the proposed expansion is completed.
Centre To Consider Framing Model Builder-Buyer Agreement:
Supreme Court
Brushing aside the Centre’s “it is states’ responsibility” stand, the Supreme Court asked the Union government to draft a model national builder-buyer and agent-buyer agreements to protect the flat buyers from remaining at the mercy of the realtors and getting fleeced by them.
A bench of Justices D Y Chandrachud and Surya Kant persuaded the Centre not to adopt a hands off approach and get involved in drafting model agreements to protect the unsuspecting middle-class flat buyers who often get fleeced of their hard-earned money because of the builder-framed sale agreements that tilt heavily towards the realtors.
“Instead of leaving it to the states, the Centre can frame a national model law. Builders often prepare a bulky sale agreement document with clauses that helps them fleece the flat buyers. We are concerned by the plight of the middle-class who get caught in the web of such builder-leaning sale agreements,” said.
