Real Estate Quarterly Q3 2022 | Highlights

 Key Highlights –

·       CPI inflation continued to rise amidst global headwinds pushing the interest rates upward. However, improved business confidence and retail spending during the festive season supported demand activity during Q3 2022.

·       Office and Warehousing demand remained robust during the third quarter, leading to increased occupancy levels across major markets.

·       Pan India office leasing stood at 13.0 msf during Q3 2022, a 26% increase from Q3 2021 backed by Technology and flex players.

·       Industrial demand stood at 6.7 mn sq ft, highest since Q1 2021, led by 3PL operators. Delhi-NCR led the demand with 56% share, followed by Pune at 16% share.

·       Investment landscape remains positive with total investments of USD3.6 Bn during the year. Inflows are likely to cross 2021 levels.

Quote:

“Indian real estate sector has bounced back sooner than expected if the first nine months of 2022 are anything to go by. Office demand has witnessed a two-fold rise YoY during YTD 2022, at 40.6 mn sq feet, and is likely to cross 50 mn sq ft towards the year-end. However, concerns about the upcoming global recession might trigger some short-term volatility in the market over the next 2-3 quarters. At the same time, the Indian market is relatively resilient and the growing economy will continue to fuel demand across various asset classes” – Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers.