2023-05-10-莱坊-India_Real_Estate_Residential_and_Office_Market_H1_2022_70页_2mb

India Real Estate Market Trends (H1 2022):

1. Residential Market:

• Recovery & Growth: Sales volumes surpassed pre-pandemic levels (2013 benchmarks), with a 60% YoY increase in units sold (158,706 units).
• Demand Drivers: Low interest rates, affordable pricing, and post-pandemic home ownership need fueled demand. High-growth IT sector and job market recovery supported appetite for larger homes.
• Price Appreciation: H1 2022 saw widespread price increases (avg. 4-9% YoY), with NCR, Bangalore, and Mumbai leading. NCR achieved the highest YoY growth (7%).
• Ticket Size Shift: Smaller-ticket sales (<INR 5mn) share declined from 51% in H1 2021 to 32% in H1 2022, while mid-high-ticket segments (INR 5-10mn+) grew steadily.
• Inventory Decline: Unsold inventory reduced to 440,117 units (QTS at 7.8 quarters), lowest in a decade.

2. Office Market:

• Hybrid Work & Flexibility: Return-to-office trends boosted demand; co-working spaces grew from 10% to 17% share of transactions. IT and BFSI led leasing activity.
• Regional Leadership: Bengaluru and NCR recorded ~107% YoY leasing growth. Mumbai reversed vacancy trends, stabilizing at 20%.
• Impact of Rising Rates: Despite ~2 percentage point rise in EMI loads, robust demand sustained. Prices held steady due to strong supply-demand balance.
• CBD vs. PBD: PBDs (Salt Lake in Bangalore, Noida) emerged as high-growth zones; CBDs saw modest rent growth in line with demand recovery.

3. Key Themes & Future Outlook:

• Infrastructure Impact: Investment in metro networks (New Delhi, Hyderabad) and tech corridors boosted demand in feeder suburbs.
• Macroeconomic Sensitivity: Inflation and RBI rate hikes marginally dented affordability; however, demand resilience favored NCR and Bangalore.
• Segment Dynamics: Niche segments (logistics, waterfront) gained traction. REITs/LRAs provided liquidity amid changing regulations.
• Outlook: Expect steady near-term growth unless anticipated recession or further monetary tightening significantly curbs demand.

Note: Rankings reflect market-share dominance across 8 key cities, with NCR and Bangalore leading office leasing and Pune/Bangalore leading residential volume.