Real Estate:Commercial
Boom Continues in REAL ESTATE September 30, 2009
Real estate sector in the country will witness a prolonged and robust demand. According to a report by global realty consultation firm Cushman & Wakefield, the pan-India residential demand for 2009-2013 could be around 7.5 million units and that for office space at 196 million sq ft.
The Cushman & Wakefield India Real Estate Investment report 2009 Survival to Revival Indian realty sector on the path to recovery estimates demand for retail space at around 43 million sq ft while the hospitality sector is expected to see a demand of approximately 6,90,000 room-nights in the same period.
According to Anurag Mathur, MD of C&W, India, Though the high-growth trajectory of the previous years saw a setback during the global economic slowdown, the inherent strong economic fundamentals, low exposure to debt and state intervention, would help the sector gradually return to the path of recovery and witness robust demand for real estate across sectors.
The pan-India residential demand is estimated to be over 7.5 million units by 2013, across all housing categories, of which 85% is expected in the mid-segment and affordable housing segment, the report says. Of the total demand expected across India, 60%, equivalent to 45 lakh units, would be generated in top 7 cities (see chart). Mumbai is expected to witness the highest cumulative demand of 16 lakh units by 2013, followed by the National Capital Region, which is expected to see a demand of 10.20 lakh units in the same period. That means, on an average, every year there will be a demand of two lakh units. This is far more than the expected supply in the area.
According to the report, the demand for housing units will keep on rising year after year. The total demand for the housing units in all the seven cities will rise from 11.96 lakh units in 2009 to 13.32 lakh units in 2010, and to 14.86 lakh units in 2011. The figure will further rise to 16.63 lakh units in 2012 and to 18.64 lakh in 2013. Bangalore and Hyderabad are expected to see the highest compounded annual growth rate of 14%.
Total office space demand is expected to be 196 million sq ft during 2009-13, of which approximately 42% is expected to be generated in the seven cities.
According to the C&W report, though office market is expected to witness a fall in demand in 2009 with an expected absorption of 27 million sq ft, the period from 2010 onwards will see the markets experience a healthier demand with a compounded annual growth of 19% from 2009- 2013. The commercial office market in India is likely to head towards a more balanced demand and supply situation in the next few years. The highest demand in the next five years is expected to be in Bangalore at 34 million sq ft followed by Chennai at 27 million sq ft. This increase in demand is largely due to improving economic conditions, positive market sentiments and growing corporate confidence.
Retail sector is expected to see a demand of approximately 43 million sq ft, mostly concentrated in the seven cities. Bangalore would see the highest demand of approximately 6.8 million sq ft however, Pune is expected to record the highest compounded annual growth of 51% for the next five years. The demand for the hospitality sector is expected to see a surge and is expected to be approximately 6,90,000 room-nights between 2009-2013. NCR and Mumbai are expected to see the highest demand due to the higher volume of business travellers to these cities. Approximately 35% or 2,42,000 room-nights of the pan-India demand for hospitality is expected to be generated in the top three cities owing to various initiatives taken by the Indian government to promote commercial and tourism activity in these locations.
Mathur says, While the upcoming 2010 Commonwealth Games have been the key demand driver for hospitality segment in NCR, the significant expected rise in office demand in the peripheral locations is also likely to play a role is boosting room-night demand. Factors like increase in urbanization, income growth, relatively high disposable incomes are likely to positively impact retail as well as residential demand in the city.NCR is expected to see the highest demand in the hospitality sector, owing to its growing importance as commercial and political centre. The maximum surge for demand in hospitality is expected to be witnessed in 2010 during the Commonwealth Games. The retail demand is expected to be 66.6 million sq ft by 2013 and the residential demand in the same period is expected to be approximately 10.20 lakh units. The office space demand on the other hand is expected to be approximately 25 million sq ft.
Mumbai is expected to see the highest demand for residential space of approximately 16.40 lakh units due to the large scale urbanization. The mid-scale and affordable housing in suburban and peripheral areas will be the focus of this demand. However, the demand for office space would be approximately 23.7 million sq ft, which is lower than that in Bangalore, Chennai and NCR. The demand for hospitality in Mumbai is expected to be strong at over 98,500 room-nights, by virtue of the fact that the city is regarded as the financial capital of India and therefore the volume of both domestic and foreign business travellers is expected to grow steadily. Demand for retail is expected to be 6.19 million sq ft. On the other hand, Pune is expected to see the highest compounded annual growth in retail demand at 51% due to the current favourable demographics. The total expected demand for retail in Pune is approximately 1.76 million sq ft. Office demand in Pune is expected to be 21.7 million sq ft.
Bangalore emerges as a clear preference for sectors like office and retail, while it comes a close third in the residential and hospitality segments. Bangalore is expected to see the highest demand for office space in 2009-2013 of approximately 34 million sq ft. The expected recovery in the IT/ITeS sector would have a positive affect on the demand in Bangalore, the preferred location for many IT/ITeS companies. The demand for retail sector is also expected to be the highest in Bangalore with approximately 7 million sq ft, while demand for residential is expected to be approximately 5,70,000 units over 2009-2013, with the highest compounded annual growth rate at 14%.
Chennai is likely to witness the second highest demand for office spaces after Bangalore, of approximately 27.2 million sq ft, by 2013. Good infrastructure, high quality construction and competitive pricing would be the key reasons for the location to see high demand from corporate sector. Hyderabad is expected to witness an office demand of 16.6 million sq ft. The residential demand for Hyderabad is expected to be 2,90,000 units, and like Bangalore, is expected to see the highest compounded annual growth rate of 14%.
Kolkata is expected to see a demand of 9 million sq ft for office space while retail is expected to be a healthy 4.15 million sq ft. Residential space demand is expected to 2,90,000 units while hospitality demand is expected to be approximately 24,869 room-nights.
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8 comments:

  1. Pandyan22:17

    Chennai Land For Sale


    1 to 10 Acres commercial land for sale in CHENNAI ( NH-45-GRAND TRUNK ) on main road. With clear title. Suitable for IT-Park, Hotels, Commercial mega projects, Residential villa, Investment, etc. Genuine buyers please contact for more details: 044-24315999 / 24345999. Mobile:9444033283.
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  2. Paul04:12

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  3. Sankar yadav04:15

    6 Acre land at Marakanam(ECR)

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  4. 10 Acres commercial00:59

    Chennai Land For Sale.
    10 Acres commercial land for sale in CHENNAI ( NH-45-GRAND TRUNK ) on main road. With clear title. Suitable for IT-Park, Hotels, Commercial mega projects, Residential villa, Investment, etc. Genuine buyers please contact for more details: 044-24315999 / 24345999. Mobile:9444033283.
    City : Chennai
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    Looking for / Available : Available
    Category : Real Estate

    ReplyDelete
  5. Commercial Space for Rent at West Mambalam:
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  7. Anonymous08:14

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  8. AJAY JAIN05:10

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