India’s real estates on a growth trajectory according to FICCI 

FICCI and JLL today released a report titled ‘Future of India Real Estate: Deciphering the Mid-term Perspective’ at the 12^th edition of FICCI Real Estate Summit. The report analyses the drivers and challenges facing the sector in the next 2 to 3 years. The rapid urbanisation is expected to offer significant opportunities for real estate and infrastructure development in Indian cities. This sector has witnessed high growth in recent times with the rise in demand for office as well as residential spaces. It is also important to note that the real estate developers have been instrumental in changing the face of India through building state-of-the-art infrastructure, buildings, townships, shopping malls spread all over the country. India’s recovery from the effects of demonetization and GST is reflected in 2018 Q1 GDP clocking an impressive 8.2% growth. CPI inflation, which has been a concern in the recent past, is expected to remain at 4.7% in the annual forecast for median inflation (2018-19 and 2019-20). Apart from the macro-economic indicators, inflection points observed within each category of real estate markets indicate an overall stable growth in the medium term. Mr. Sanjay Dutt, Chairman FICCI Real Estate Committee said, “The sector has been through a bumpy ride in the last couple of years, but the environment is changing and the sector is back in the spotlight with key indicators pointing at the revival of Indian real estate. Key regulatory reforms such as RERA and REITs have given a new lease to the sector, and investors and end users are regaining confidence towards the recovery trends in the industry. Logistics & warehousing, commercial & retail are witnessing surge in demand and absorption. Overall trends are moving in the right direction for the Indian real estate sector.” Mr. Ramesh Nair, CEO & Country Head, JLL India said, “India’s real estate sector is at an inflection point and the evolutionary trends in the sector are paving the way towards sustainable growth of the industry. H1 2018 has seen phenomenal growth in Grade A office space from both, the demand & supply side. Private Equity interest in Indian retail realty is at an all-time high with the sector witnessing an investment of INR 950 cr in 2018. With regulatory reforms such as RERA and GST showing results, the sector is poised to grow exponentially. Student Housing, a new emerging sector presents a tremendous opportunity for the market.” The extent to which the real estate sector has grown can be gauged from investments in ‘under construction’ projects within investment grade real estate. This number which was about USD 173.9 billion in Q4 2012, has touched USD 242.6 billion in Q2 2018. India has moved up 30 ranks to the 100^th position on the World Bank’s scale of countries in Ease of Doing Business for 2018.  Overall, strong economic fundamentals, proactive reforms and the use of technology will continue to boost the sector. Apart from the conventional sectors, the emergence of alternative segmet (student housing and senior living) and greater demand from sophisticated logistics in the warehousing space are expected to be the drivers for robust growth and a promising future for the sector.