India’s real estate sector to expand to $5.8 trillion - Telangana Hyderabad in Focus
According to a joint report by Knight Frank and the National Real Estate Development Council (Naredco), India's real estate market will grow to $5.8 trillion by 2047 from $477 billion in 2022, driven by cities like hyderabad, Chennai, and Bengaluru. This will account for more than 15% of the nation's total economic output.
Shrinking Low-Income Group
According to the estimate, which was unveiled in hyderabad, the percentage of lower-income groups will decrease from its current 43 percent to nine percent by the time india celebrates its 100th anniversary of independence. In the following 24 years, a sizable portion of the now low-income group would move into the lower-middle or upper-middle income groups, according to the analysis. The demand for mid-segment and luxury houses would then progressively replace that for inexpensive housing.
Luxury housing is becoming more in demand, even though the mid-segment housing market will continue to dominate. Luxury home purchases in India's top eight cities made about 16% of all sales in 2018. Kolkata, the National capital Region of Delhi, Ahmedabad, Mumbai, and pune are the other cities in the South, in addition to hyderabad, Bengaluru, and Chennai. Additionally, by 2047, the percentage of High-Worth Individuals (HNIs) and new ultra-HNIs would probably rise to 9% from the current 3%, creating a large demand for luxury property in the nation.
The proportion of this market category climbed noticeably to 27% in 2022. The demand for luxury homes in india will continue to rise as a result of factors including the expanding economy, income growth in the high-paying services sector, and an increase in the number of HNIs and UHNIs.
The hyderabad Scene
The proportion of this market category climbed noticeably to 27% in 2022. The demand for luxury homes in india will continue to rise as a result of factors including the expanding economy, income growth in the high-paying services sector, and an increase in the number of HNIs and UHNIs.
The hyderabad Scene
The IT and Banking, Financial services, and Insurance (BFSI) industries continue to make investments in the hyderabad real estate market, according to Knight Frank India. "The IT and BFSI sectors continue to invest in Hyderabad. According to india Herald, Samson Arthur, Senior Branch director of Knight Frank, india, "verticals in electric vehicles and aerospace engineering are also expanding."
The other sectors that are expanding more in this area are data centres and warehouses for e-commerce. According to him, housing in hyderabad is becoming more premium as HNIs want bigger spaces, high-rise buildings, more facilities, and luxurious interiors. Arthur said that other projects were probably going to be built in the Budvel, Gandipet, and Kokapet regions in response to the price increase in locations near Himayat Sagar and Osman Sagar. According to Knight Frank, which has its headquarters in London, 69 percent of the working population will be formally employed by the time the global economy reaches $36 trillion in 2047.
Warehousing Needs
Warehousing Needs
Shishir Baijal, Chairman and Managing director of Knight Frank india, stated that the government's push for high-value output sectors like manufacturing, infrastructure, and other industries, as well as demographic advantages, would support India's economic growth.
According to the report's additional estimation, the manufacturing sector will account for 32% of the nation's overall economic growth. In india, five lakh hectares of land were being exploited for industrial purposes as of 2021. These include 3,989 industrial parks, estates, special economic zones, etc. In the next 25 years, it is predicted that 102 lakh hectares will be needed to meet the demands of the industrial sector. Prior to now, local and Grade B developers dominated the warehouse industry.
According to the report's additional estimation, the manufacturing sector will account for 32% of the nation's overall economic growth. In india, five lakh hectares of land were being exploited for industrial purposes as of 2021. These include 3,989 industrial parks, estates, special economic zones, etc. In the next 25 years, it is predicted that 102 lakh hectares will be needed to meet the demands of the industrial sector. Prior to now, local and Grade B developers dominated the warehouse industry.
However, the need for high-quality warehousing buildings in india has accelerated due to the increase in organized retail and the warehousing requirements of complex industries like pharmaceuticals, cold storage, automotive, etc. In light of the expanding requirements of a sizable consuming market, according to Knight Frank, the warehouse sector has long been seen as a desirable investment opportunity.
Malls and High Streets
In 2022, the top eight cities in india featured 271 operational malls, located mainly in Lokhandwala Market, Colaba Causeway Market, and Lower Parel in Mumbai; Connaught Place, Khan Market, and Lajpat nagar in Delhi; SG Highway and Chimanial Girdharlal Rao (CG Road), Ahmedabad; Indira Nagar100-feet Road, Jayanagar 4th Block, koramangala 100-Feet Road and 80-Feet Road, Bengaluru; Gachibowli, Ameerpet, Banjara Hills, and Jubilee Hills, Hyderabad; mahatma gandhi Road, Koregaon Park, and Baner Road, Pune; Nungambakkam High Road in Chennai, and DLF Galleria in Gurugram.
After 2018, Grade A developers continued to increase their presence in response to the increased demand for high-quality malls, accounting for 45 percent of all currently functioning malls in India's top eight cities. High streets also make up a large portion of India's retail real estate market, in addition to shopping malls. According to Knight Frank, the top eight cities' 30 high streets together account for 13.2 million square feet of retail space, of which 5.7 million square feet is contemporary retail space. Additionally, it mentioned the value of high-street merchants on par with that of malls.