North India's commercial real estate sector is expected to undergo a massive boom in the coming years, as the region has seen a rise in investment inflows, an upsurge in construction activities, and an increase in demand for commercial spaces.
With the increased urbanisation and rising household income, the demand for residential properties in North India has surged, driving the growth of the real estate market in the region. As a result, there has been a parallel increase in demand for commercial real estate. In fact, India's position among the top 10 price-appreciating housing markets globally is a testament to this trend. Experts predict a positive future for North Indian commercial real estate, given these favourable conditions.
The growth of India's real estate market is being fueled by urbanization, rising disposable incomes, and a thriving services sector. The northern region, which encompasses Delhi, Haryana, Punjab, Rajasthan, Uttar Pradesh, and Uttarakhand, is a key contributor to this growth.
The growth of commercial real estate in North India is being accelerated by the Indian government's initiatives such as Make in India, Digital India, and Smart Cities. These initiatives have enticed both domestic and foreign investors to the region, leading to increased investments in commercial real estate projects. As a result, the organized retail real estate stock is predicted to grow by 28% to reach 82 million sq. ft. by 2023, signalling robust growth prospects for the sector.
The commercial real estate industry in India is experiencing a shift towards Grade A and Grade B office spaces that cater to distinct needs. Grade A offices are located in prime areas and provide exceptional amenities, while Grade B offices are found in emerging business districts and offer moderate facilities. The surge in demand for both categories of office spaces in North India can be attributed to the growth of the IT and IT sectors in the region.
Over the last few years, North India has witnessed the rise of multiple new business districts, such as Gurgaon, Noida, and Greater Noida. These districts are home to several IT and ITeS firms, as well as multinational corporations, and provide premium office spaces. With the anticipated growth in demand for office spaces in these districts, industry experts predict that they will evolve into significant business hubs in North India.
With the increase in consumerism, expansion of the middle class, and the growth of organized retail formats, the organized retail sector in India is expected to expand at a CAGR of 25-30% in the coming years. North India, which comprises the national capital Delhi, is a significant retail destination in the country and is well-positioned to leverage this growth potential.
The expansion of e-commerce has significantly impacted the retail real estate sector in North India. Prominent e-commerce players such as Amazon and Flipkart have established their warehouses and distribution centres in the region, leading to a surge in demand for logistics and warehousing spaces. In addition, the growth of e-commerce has spurred the emergence of novel retail formats like hypermarkets, supermarkets, and convenience stores, which necessitate substantial retail spaces.
North India, encompassing renowned tourist destinations like Agra, Jaipur, and Shimla, plays a crucial role in driving the growth of India's hospitality industry.
The surge in foreign tourist arrivals has resulted in a heightened demand for hospitality real estate in North India.
To sum up, the North Indian real estate market is poised for rapid growth, thanks to government initiatives and the increasing purchasing power of individuals.
© 2023 Rera News. All rights reserved.