bangalore, Chennai, Demand for real estate, home office, Hyderabad, Most sought real estate destinations, Most sought real estate destinations in the country, Office Furniture, Office space in South India, Rapid growth of the real estate, Real estate destination India, real estate in india, real estate market, real estate markets in Bangalore, real estate research firm, Retail markets in Southern India, south Indian real estate market
One of the most sought real estate destinations in the country is the Southern part of India. The southern part of India has been the hushed crusader, developing and soaring heights in the real estate field. The prominent cities like Bangalore, Hyderabad, Chennai and other parts are in great demand for real estate due to their improving transparency and visibility of the real estate markets. They have attained a position in the global real estate map which was earlier given only to the major cities.
There is an increase in the new opportunities which are created by the influx of large scale domestic and foreign players. These factors have led to a rapid growth of the real estate sector in all the cities. Further this has also transformed the real estate sector into a lucrative investment opportunity. This has attracted venture capital and diversified sources of funding in addition to providing new opportunities for new construction technologies and others.
Office space in Southern India
Southern part of India is witnessing various growths of infrastructures and projects. It comprises of about 45% of India’s office space. The stock rate in these places will increase by 8% in the upcoming years which is lower than the projected national growth of about 1%. Cities like Bangalore and Hyderabad are moderately efficient in terms of medium term supply of office space and have chosen a strategy of pursuing selective quality developments over the rapid expansion. By keeping their office stock range bound by 37%-40%, they are expected to increase by about 16% in the coming years.
Retail markets in Southern India
In the past decade, South India’s retail section has witnessed a drastic change with an increase of 13.2 2 million sq ft in the year 2012 from 1.6 million sq ft. Also the share of South India’s retail stock to the pan-India will increase from 20% to 30% in the upcoming years. The increased demand for these areas is due to various reasons like the growth of malls, retail spaces, high streets and so on.
The mall spaces in Southern India will increase up to 40 million s1q ft in the coming years. The increased growth of the retail spaces in southern India will perhaps result in a decline in the vacancy of about 20.5%. The residential markets in south India are assumed to be affordable and have increased their growth by 80%, which are priced under Rs.4,000 per sqft. This has given increased chances of the Southern cities remaining string in the real estate sector when compared to cities like Mumbai and Delhi. Having a stable and sturdy real estate market will allow the real estate agents to price their properties in a prudent manner in order to compete and sustain their top position.
The real estate in the southern Indian regions is shifting from Tier I to Tier II cities followed by the developments in the regions like Mysore, Cochin and so on.
Impact of malls in the real estate sector in Southern India
The growth of malls in southern India has increased to about 59 which comprises of the retail stock. The retail stock share will increase to 36 per cent in the coming years. Results found out through a survey state that the retail market is expected to grow in the coming years. There is an increased development of retail malls which are primarily dominated by the local developers. All the 59 malls in the southern states are either in the stages of construction or are already established. Few of the active project developers in the Southern region are the Mantri Developers, The Prestige Group, DLF, RMZ Corp and so on.
Real estate in India
With the rise in the real estate industry, India is expected to become the third largest construction market in the next few years. The real estate industry will reach to a size of USD 180 Billion. Also there will be an increased activity among various industries related to the domestic consumption of the goods and services. Adding on to this, there is an increased demand for the housing in India.