Just a year ago, forecasters of doom for the real estate sector were at large. The writing on the wall spoke of the sector hitting rock bottom in the office space fragment. When US got a new government, everything was hazy.
Terrifying tales floated around the automation sector; AI and the performance of the leading five Indian ITES firms. On the other hand, in spite of all endeavors to downplay the persistent positive flight path, the overall ride for India’s commercial realty sector has been marked with positivity this year.
Going by a macroeconomic viewpoint, 2017 was a fruitful year for India. India’s positioning in the World Bank’s ‘ease of doing business’ catalog rose to 100 in 2017 from 130 in 2016. The closing quarter of the year experienced an FDI inflow of $85.79 billion; which was the biggest-ever FDI investment in one quarter.
The application of different transformative corrective policies on the lines of demonetization, GST and RERA probably have brought about a handful of transient obstacles for the country’s real estate industry, but it is safe to say that the outcome will yield good returns in the long run and make the industry stronger.
The non-housing realty market remained hale and hearty in 2017. Market statistics augur that the pan-India office space absorbed more than 35 million sq ft, a number comparable to that in 2016. This in no way is even remotely indicative of any slack in demand, which proved quite a few predictions untrue in the past 12 months.
Co-working Office Space
Year 2017 saw immense acceptance in the co-working office space. Kicked off by beginners, entrepreneurs and freelance persons to live up to their need for working in a right and proper lucrative habitat, the drift has now caught up with large occupiers who are making use of co-working office spaces for their provisional office needs.
While the realty sector undergoes continuous evolution led by the impact of the enactments that were unfurled in 2017, the industry’s growth potential across the horizon in 2018 spells success. The year at hand gives indications of carrying on with the legacy of optimistic attitude for commercial office occupation, which is now positioned at more than 20 million sq ft, at close to 95 per cent possession rate and a development conduit of more than 15 million sq ft across the Southern part of India.
Visualizing it from an investor’s point of view, one can expect to see REITs entering the marketplace and changing the course of action, which governs the funding of real estate in India.