Is India the Next Commercial Real Estate Powerhouse?
GRI Club India
High-level content and networking, shaping the present and future of the real estate market
GRI Club recently hosted the India GRI - New York Edition at the New York Marriott Downtown. The event featured technical visits to innovative projects, engaging social activities, closed-door debates, and matchmaking initiatives.?
?? The conference opened with the "Emerging Markets Outlook" session, moderated by Gustavo Favaron (GRI Club) and led by Richard Barkham (CBRE), Ben Brown (Brookfield Properties) and Manoj Menda (RMZ Corporation), industry leaders who explored future economic predictions for developing countries.
Key insights from the sessions included:
Check out GRI Club India’s new article for an in-depth look at these discussions and stay ahead of global real estate trends and future forecasts!
India Needs 100 Million Homes This Decade
Indian home builders may need to construct up to 100 million new homes over the next ten years as rising household incomes drive demand in the world's fastest-growing major economy.?
According to Abhishek Lodha, CEO of Macrotech Developers Ltd., approximately 70 million Indian households will become eligible for home ownership by 2034, with additional demand from those looking to upgrade their residences, creating a substantial requirement for new housing units.
The market's robustness is further highlighted by residential real estate sales surpassing the 1 billion square feet mark, achieving 20% year-on-year (YoY) growth in FY24, as reported by Kotak Institutional Equities.?
Meanwhile, the influx of new housing supply in the top seven cities is cooling previously overheated rental markets. Anarock's data indicates that residential rentals across these cities grew by 2-4% in Q2 2024, a significant drop from the 4-9% growth recorded in Q1 2024.
Sales of affordable homes in the top eight cities also fell by 4% in the January-March period, reflecting the increased supply and shifts in buyer preferences.?
In contrast, house prices have been soaring, recording a 13% compound annual growth rate (CAGR) as inflation moderates to 5.4%. The city of Mumbai even recorded the third highest YoY growth in prime residential prices, ranking it third on Knight Frank’s Prime Global Cities Index, after Manila and Tokyo.
Despite these fluctuations, the low levels of unsold housing stock have allowed the market to absorb slower pre-sales growth effectively, maintaining overall stability. This balance between supply and demand ensures that developers can manage and sell existing inventories without significant market disruptions.
As the Indian residential real estate market evolves, new opportunities are emerging both domestically and globally. Explore synergies for cross-border partnerships at GRI Club's "Europe & APAC Cross Border Capital Opportunities" event in London on June 26th. Don't miss the chance to engage with industry leaders and explore new avenues for growth and investment!
Revolutionizing Urban Living
领英推荐
GRI Club’s recent online meeting “Revolutionizing Urban Living” focused on the post-COVID transformations in Student Housing and Co-Living. Key discussions included how operators and developers have adapted to evolving end-user needs, enhancing customer experiences, and leveraging technology and AI for industry innovation.?
?? Highlights included analysing demand trends, such as streamlining bookings and fostering community-building, while emphasising technology and AI's transformative role with case studies.?
Diversification strategies, including new property types and innovative services, highlighted the need for agility in a changing market.?
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