The year 2017 is expected to be a year of fructification – with the results of all policy initiatives taken in 2016 beginning to take shape. Most of the steps, including Real Estate Regulatory Act (RERA), Goods and Services Tax (GST) and Real Estate Investment Trusts (REITs), are aimed at improving transparency and enhancing the overall investor sentiment.
Steady lease rentals, high absorption levels and global investor interest continue to bring life into India’s commercial real estate sector.
The year 2017 is likely to be positive for retail witnessing an increased quality supply; with an addition of almost 7 million sq. ft. of Grade A supply, to be led by Southern cities.
Housing sales are expected to remain dormant in H1 2017 both in the primary and secondary markets, likely to be followed by a period of relative stability in H2 2017, as homebuyer enquiries are expected to rise due to a favorable lending and policy environment.
Demand for warehousing space is anticipated to remain robust throughout 2017, with consolidation (as a result of the implementation of the GST) being amongst the biggest drivers.
In 2017, proactive government policies are likely to provide a more secure environment for investors. While office and residential are expected to remain traditional drivers; however, alternate sectors such as retail and warehousing will also come to the forefront.