Report | Intelligent Investment
India Market Monitor Q3 2023
October 19, 2023 10 Minute Read
The Indian economy has maintained its growth momentum in the first nine months of 2023 primarily due to sustained domestic consumption and a diversified exports basket despite global headwinds. However, inflation could potentially keep key policy rates elevated longer than previously forecasted.
With this backdrop, here is a review of key trends witnessed in the real estate sector in 9M 2023:
- Office: Notwithstanding prevailing macroeconomic challenges, office market showed resilience in 9M 2023 witnessing growth in leasing activity on a quarterly and yearly basis; the sector is poised for a better-than-expected 2023 on the back of steady occupier confidence.
- Industrial & Logistics: Despite marginal tapering in leasing activity on a quarterly basis, quality supply addition and strong festive demand are likely to drive overall I&L absorption to expectations-beating 36 – 38 million sq. ft. in 2023.
- Retail: Robust growth witnessed in leasing and supply addition in Q3 2023 in the sector; the overall space take-up is likely to strengthen further on the back of incoming supply and the ongoing festive season.
- Residential: While residential sales exceeded 230,000 units in 9M 2023 registering 5% Y-o-Y growth, sustained momentum in demand led developers to launch over 220,000 new housing units during the same period at a marginal growth of 1%. Both sales and new launches could reach a decadal high in 2023, touching or even exceeding the 300,000-unit mark.
- Investments: Investment activity regained momentum, witnessing an increasing trend in Q3 2023. Land activity remained strong while opportunistic and core / core plus bets dominated the capital flows.
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