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Almost 200 m sq ft of space to be added in 2019

Residential supply to improve

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Residential supply to improve

 

CBRE India.
CBRE in Bengalore.

Almost 200 million sq ft of space will be added across all segments including housing, office, retail and logistics this year (2019), said a report by property consultant CBRE India.

The real estate stock in India will reach 3.7 trillion sq ft at the end of this year, the consultant said in the report ‘Real Estate Market Outlook 2019 – India’ released on 5 April 2019 in Bengaluru.

“The growth of the Indian Real Estate market in 2019 will be driven by numerous factors including technology, demand-supply dynamics, improved ease of doing business rankings and the dust settling post the implementation of reforms such as GST, RERA among others,” said Anshuman Magazine, Chairman & CEO of CBRE India.

Significant growth across segments, will lead to the addition of almost 200 million sq ft of new real estate space across categories including office, retail, residential and logistics in 2019.

Post the policy reforms of 2017, such as demonetisation, Real Estate Regulatory Authority (RERA) and Goods & Services Tax (GST), the residential market is absorbing the impact of these changes and is on the path to recovery, CBRE said.

This led to a growth of about 15% year-on-year in new supply and 13% year-on-year in sales.

“As developers align themselves with structural policy reforms implemented in the past few years and with changing characteristics of demand, we can expect residential supply to improve in 2019,” said the report.

The residential market is better placed this year as speculation-led investment activity has reduced significantly and financial checks are in place to prevent over-gearing, it added.

The supply-demand scenario is expected to improve while unsold housing inventory levels are likely to decline further.

Affordable housing will drive supply and demand, backed by several government reforms.

“Alternate assets such as co-living, student and senior housing will continue to garner greater interest from end-users and developers,” the CBRE report said. fiinews.com

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