India’s real estate stock is to grow by 200 million square feet in 2019 thereby taking the total number to 3.7 trillion sq.ft. according to a report by real estate consulting firm CBRE.
The report titled, ‘Real Estate Market Outlook 2019 – India’ mentioned that the residential segment, the supply and demand scenario is expected to improve and unsold inventory levels to further decline. Also, alternate assets such as co-living, student and senior housing will continue to garner greater interest from end-users and developers.
“The growth of the Indian Real Estate market in 2019 will be driven by numerous factors including technology, demand-supply dynamics, and improved ease of doing business rankings among others. We expect to see significant growth across segments, which will lead to the addition of almost 200 million sq. ft. of new real estate space in 2019 across categories including office, retail, residential and logistics,” said Anshuman Magazine, Chairman and CEO – India, South East Asia, Middle East and Africa.
According to the report, the rental segment will continue to grow across the key markets in Bangalore, Chennai and Pune, however, this growth is expected to taper across most cities. While, Delhi-NCR and Mumbai would also see rental growth but it would be in select locations.
The report mentions that the leasing activity in the sector would be driven by rising interest of global occupiers and workplace changes due to digitisation.
It added that the combination of these sources of demand coupled with supply influx of quality space to result in the share of net absorption to rise from the current 60-65 per cent to about 70-75 per cent during 2019-2020.
In retail around 10 – 12 million sq. ft. of supply is expected to come on-stream in 2019 and the demand is expected to outstrip supply.