India Market Monitor 2022
January 19, 2023
The year 2022 ended on a promising note for Indian real estate, with almost all sectors scaling new highs in terms of demand in the post-COVID-19 period, driven by pent-up demand and expansionary market sentiments. In 2023, India’s strong macro fundamentals are likely to ensure that the country, and by extension the real estate sector, remains on the growth path, global headwinds notwithstanding.
Given below is a recap of the trends witnessed in the real estate space in 2022 and the road that lies ahead:
- Office: Sector records highest leasing activity since the peak of 2019.
- Industrial & Logistics: Space take-up in 2022 almost touched the 2019 peak; supply addition picked up pace in Q4.
- Retail: Leasing activity touched a new high in 2022; despite global headwinds, space take-up expected to strengthen further given the strong supply pipeline lined up for 2023.
- Residential: Sales climbed to an all-time high and unit launches too touched a decadal peak.
- Investments: Investment activity in real estate surged to an all-time high in 2022; we expect steady capital inflows in the sector in 2023 as well, but investor caution is likely given recessionary fears in the US and Europe.
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