Friday, 15 December 2023

Year-End Quote | Real Estate

 * Fractional Ownership

Mr. Shravan Gupta, founder and CEO of YOURS a platform for fractional ownership of luxury second homes
The year 2023 marked a significant milestone for fractional ownership, particularly within the second or holiday home segment. Several factors contributed to the heightened demand for fractional ownership of luxury second homes, including the growing acceptance of this concept, rising property prices, and the willingness of affluent families to invest in holiday properties.
The recent guidelines issued by SEBI pertaining to fractional ownership and small REITs have further solidified the foundation for growth in this sector in 2024. The market exhibits substantial potential, and the coming years are anticipated to witness exponential growth in the fractional ownership segment. The evolving regulatory landscape and increasing recognition of the advantages associated with fractional ownership are expected to propel this market to new heights, making it a promising avenue for investors as well as end users.
*Developer
Mr. Ankit Gupta, Director, Reach Group, a leading real estate developer
The year 2023 has marked another remarkable year for India's real estate markets, experiencing an unprecedented surge in property transactions that surpassed the previous highs of 2013-14. This surge in demand has been truly exceptional, reflecting a noteworthy boost in market dynamics and increased confidence among homebuyers. The heightened level of property transactions observed this year serves as a testament to the enhanced resilience and maturity of the real estate sector.
The encouraging trend indicates a positive shift in both market sentiment and the confidence of homebuyers, contributing to a more robust and stable real estate landscape. As we look ahead to 2024, the outlook remains optimistic, with expectations of sustained demand. The stability of macroeconomic parameters is anticipated to be a key factor supporting continued growth, fostering an environment conducive for investments in the real estate market.
Mr Prashant Rao, Managing Director, Poulomi Estates, a Hyderabad-based real estate developer
The year 2023 marked a pinnacle in Hyderabad's real estate landscape, propelled by substantial investments that poured into the city. Government initiatives, including infrastructure projects and improved internal roads to alleviate traffic, played a pivotal role. Simultaneously, there was a heightened realization among people about the importance of spacious homes, leading to a resurgence in real estate investments.
This transformative year saw the emergence of a new housing segment in Hyderabad—the premium, ultra-rich, or large-format apartment category. Unlike previous years, where apartments were limited to 4000 square feet, 2023 witnessed the launch and enthusiastic acceptance of apartments ranging from 6000 to 15000 square feet, presenting an entirely novel dimension in the market.
Notably, the last seven months alone witnessed the leasing of close to 6.5 million sq ft of IT space in Hyderabad, indicating a thriving commercial real estate sector. With these transformative trends, 2024 is anticipated to surpass expectations, propelling Hyderabad to new heights. The city is poised for superior growth compared to other metros, driven by a surge in income and a burgeoning economy, which have contributed significantly to the increased demand for luxury housing, both nationally and prominently in Hyderabad.
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.
 “As the final curtain descends in 2023, the real estate industry witnesses an impressive surge, with Gurugram's mid-housing sector taking center stage.  The year-end reflection unveils a YOY upswing, showcasing a strategic prowess in meeting the escalating demand for affordable yet quality residences. In areas like Dwarka Expressway, New Gurugram, South of Gurugram (Sohna), SPR  residential demand has seen a significant upswing, driven by a keen interest from buyers towards mid housing and massive infrastructure development in these locations. The spotlight on the mid-housing sector has been particularly noteworthy, reflecting the discerning preferences of homebuyers seeking the perfect blend of affordability and quality living. 
Looking ahead to 2024, the positive trends set in motion in 2023 reverberate as a promising melody for the entire real estate industry. The anticipated growth in demand for mid-range housing, Luxury housing mirrors the evolving preferences of homebuyers and signifies the resilience and adaptability inherent in the real estate market particularly locations like 37D, sector 71, Dwarka Expressway & South of Gurugram. The anticipated growth in demand aligns with the broader landscape, as the Indian real estate sector is poised to jump multifold in the coming years.
*Consultancy
Mr Badal Yagnik, CEO, Colliers India
“Although, the start of the year was cautious, 2023 is on course to become one of the best-performing years in real estate sector across asset classes. Leasing activity in office market is inching towards 50 mn sq.ft. comfortably; residential activity remains robust with sales and launches likely to breach 2022 levels convincingly. After two consecutive years of significant recovery and sturdy growth, 2024 is likely to be a year of redemption where real estate will reshape, restructure and realign on a stronger domestic footing. In addition to heightened focus on sustainability, a mix of core plus flex strategy will characterise the commercial real estate market of India, even in the smaller Tier II cities. Active institutional investor pursuit for prime ventures in office, residential, data centre, logistics and shared space markets will extend India’s decisive positioning in real estate-specific investments within the APAC region.”
Mr Shrinivas Rao, FRICS, CEO, Vestian
 “Despite an uncertain start to the year 2023, the Indian economy and more so, the real estate sector performed well. Government’s infrastructure push increased domestic demand, corporates’ back-to-work strategies, and rise in e-commerce kept the real estate market buoyant during the current year. 
Rapidly changing real estate dynamics in the current year are likely to take shape as markets stabilize in 2024. Furthermore, tier-2 cities are likely to see increased traction on the back of affordability, abundance of local talent pool, and a robust pipeline of planned infrastructure projects. The future of Indian real estate sector is promising with a core focus on sustainability and innovation.”
*Co-working
Mr Amal Mishra, Co-founder, UrbanVault, a Bengaluru-based managed co-working space provider
The year 2023 has proven to be highly successful for managed flexible and co-working spaces, witnessing a significant resurgence in demand following the setbacks experienced during the COVID-19 pandemic. This revival has outpaced the available supply, marking a recovery in the flexi space market. 
At Urban Vault, we've taken proactive steps to elevate the customer experience by offering amenities beyond the conventional standards and providing customised solution to our clients. The growth of flexible workspaces is back on a positive trajectory, and 2024 is poised to be a transformative year for the flex office segment. 
Key trends expected to drive growth in the sector include the evolution of business models, heightened investor activity, and demand from domestic as well as international companies. Technology-enabled services, with a focus on AI, will take center stage in shaping the future of flexible spaces. Customized solutions will be integral to managed flexible spaces, with the expectation that the segment will maintain its upward trajectory in 2024 and beyond.

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