Get ready to hold on to your seats because Indian real estate sector is soaring high in 2023! CBRE India, the commercial real estate services and investments provider has just released some jaw-dropping figures for the first quarter (Q1) of the year.
According to CBRE India, most sectoral indicators are recording annual highs, which is a clear sign of a promising start to the year. The retail sector, in particular, has seen triple-digit annual growth in both leasing activity and supply addition in Q1. Can you believe it? That’s triple-digit growth!
But wait, there’s more! Third-party logistics has played a significant role in driving leasing momentum, thanks to the increasing demand for e-commerce. With this trend showing no signs of slowing down, the real estate sector is poised for continued growth.
Despite global headwinds, CBRE India remains confident that the country’s strong macro fundamentals and the real estate sector’s resilience will keep it on track for sustained growth. So, buckle up and get ready to witness an exciting year for Indian real estate!
The Indian retail sector is on a roll!
In the first quarter of 2023, the sector witnessed triple-digit annual growth in leasing activity and supply addition, with further growth on the horizon. CBRE India’s ‘India Market Monitor Q1 2023’ report highlights that the third-party logistics sector continued to drive leasing momentum during the quarter, especially with the increased demand from e-commerce.
The entry of quality supply will ensure the sector’s resilience to macroeconomic uncertainty, according to the report. This is fantastic news for investors and businesses alike. Sustained investment inflows are expected in the sector this year, despite the looming recessionary forces in key developed economies, which may slow the pace of decision-making, notes CBRE.
The top three cities contributing to investment inflows in Q1 2023 were Mumbai, Delhi National Capital Region, and Bengaluru, which collectively accounted for almost 30 percent of the investment inflows in the retail sector. These statistics are proof of the sustained growth and attractiveness of India’s retail sector to investors, both local and foreign.
Get ready to step into the future of retail in India! As per the latest CBRE report, pent-up supply addition and several investment-grade projects launched in the past two years will lead to a surge in retail supply surpassing 2022 levels. This is great news for the retail sector, as primary leasing is expected to be the main demand driver for retail space this year.
To keep up with changing times and consumer preferences, retailers in India are expected to diversify their location strategies beyond traditional malls and high streets. Supply chain transformation will be the key, enabling consumers to shop for any product, any time. As part of the omni-channel strategies, metaverse and social commerce are set to emerge as the mainstays, as per the CBRE forecast.
Luxury realtor and social media content creator, Snehil Yadav says, “The Indian retail sector is likely to continue ‘right-sizing’ stores, not only to engage customers but also to provide a wide range of choices in stores. This trend is set to revolutionize the way we shop, with the emphasis being on customer experience and satisfaction.”
As the Indian economy continues to grow, the retail sector is poised for a period of sustained expansion and innovation. Get ready to experience the future of retail in India, where convenience, choice, and customer satisfaction are the top priorities.
Investment inflows in the office sector rose by a whopping 41% YoY at $0.9 billion, fueled by select large deals. Meanwhile, the residential sector recorded a 22% share of the total inflows.
These numbers bode well for the Indian real estate sector, which has shown remarkable resilience in the face of global economic uncertainties. As the Indian economy continues to grow, the real estate sector is expected to keep up its growth trajectory, driven by sustained investment inflows and favorable macroeconomic fundamentals.
This positive trend is a testament to the Indian real estate sector’s ability to adapt to changing times and customer preferences, with the emphasis being on quality and innovation. With the office sector leading the rally, we can expect to see more large-scale investments in the coming months, fuelling growth and driving innovation in the Indian real estate sector.