2023 should see further growth in office space transactions as more corporations continue to call back their staff to office as well as continue to hire more, stated the India Real Estate Outlook 2023 report released by Knight Frank.
While global conglomerates may still demonstrate some restraint in the growth of their India business, the Indian conglomerates are expected to continue their growth leading to greater demand for office space.
“The retail segment will be seeing some consolidation in terms of ownership as seen in the last few years. However, as end users return to malls and with malls evolving into destinations, we expect the Indian retail story to start seeing a new phase of growth, which will be balanced and more sustainable. We hope to see some significant investment activities in the segment as well,” said CMD of Knight Frank India Shishir Baijal.
He added, “As 2022 ends, it won’t be wrong to say that it has proved to be a year of great success for the real estate sector. Easily dubbed as turn around year for segments like residential and retail, the year saw all segments recover from COVID lows and record significant year-on-year growth. This year also saw the resurrection of the residential market. The trend of preference for residential ownership that started 18 months ago continues throughout the year.”
While 2023 may have its own challenges in geopolitics impacting India’s real estate segment, some positive signs are emerging. There are signs that the eastern European war may end soon, while the global trend of inflation may start receding by the middle of the new year and global oil prices may also stabilise. India’s domestic growth will start gaining momentum as domestic inflation is also likely to remain contained.
