Despite COVID-19 related challenges, the Indian real estate sector is seeing demand revival, a report by Confederation of Indian Industry (CII) and JLL said.
“The pandemic did halt much of the industry’s growth, however there are lots of green shoots emerging and transforming the future of all asset classes with multi-fold opportunities,” Radha Dhir, chairperson, CII Realty & Infrastructure Conclave, and CEO & Country Head, India, JLL, said in the report.
“Commercial real estate has shown resiliency in 2021 and is likely to gain momentum in 2022. The office segment will remain the centre of the work ecosystem,” she said.
According to the report, the residential market remains on track to recover completely to pre-COVID levels.
“Structural changes such as an increasing middle class, accelerating e-commerce, technological innovations and advancements in sustainable solutions, are propelling the demand for logistics and industrial growth,” Ms. Dhir said.
Non-traditional forms of real estate assets such as data centres, healthcare, life sciences educational institutions, senior living, co-living and student housing had become increasingly popular, she added.
“Macro-economic drivers such as urban growth, adoption of Internet and smart phones, and an ageing population underpin the need for these alternative assets,” she said.
As per the report, investments continued unabated and registered $2,668 million during H1 2021, which was three times the H1 2020 period.
The first half of 2021 saw broader participation with 26 deals as against 14 deals year-on-year.
“The lockdown relaxations during the first quarter of 2021 provided a first-hand glimpse and experience of a post-pandemic world to investors, which led to re-rating of risks, with asset allocation witnessing a change during H1 2021. Investors have come to accept that they must operate in an environment of constraints and some uncertainty,” said Samantak Das, Chief Economist and REIS, India, JLL.
The development focus on the affordable and mid-price segment would continue, the report said.
