Real estate demand to cross 1,000 million sq. ft by 2012

Real estate demand to cross 1,000 million sq. ft by 2012

Mumbai: Real estate demand in various segments in the country would cross the 1,000-million sq ft mark by 2012, a real estate investment report said.

“Indian demand for real estate across office, retail, residential and hospitality sectors is expected to cross 1,000 million sq ft by 2012," said Cushman and Wakefield (C&W) and GRI in ‘The Metamorphosis’, a report on India Real Estate Investment for 2008.

The residential segment continues to drive real estate demand with 687 million sq. ft, contributing 63% throughout the term under consideration, the report said.

“Despite the expected slowdown in the office market, the demand for commercial office space is projected to be 243 million sq. ft, which is around 22% of the total demand projections for the next five years," it said.

The retail and hospitality segments were expected to constitute 95 million sq. ft (9%) and 73 million sq. ft (6%) of this total demand, respectively, C&W said.

“In the long-term, strong demand for real estate in India will remain intact and will probably see us through another real estate cycle once the market finds its own level by responding to these short-to-mid term global and domestic factors," C&W joint managing directors, Anurag Mathur and Sanjay Dutt, said in the report.

A dynamic workforce, liberalized economy, robust demand for real estate across sectors were few factors which would make Indian market in the times to come more reliable for investment in the real estate sector, they said.

The National Capital Region (NCR) has emerged as a clear preference for sectors such as retail, residential and hospitality while coming a close second in the office sector, Cushman and Wakefield said.

“The growing importance of the city can be gauged by the quantum of demand which it is likely to see," the report said.

While the commercial office sector would see a demand of 48-million sq. ft, residential demand would be at 114-million sq. ft by 2012, it said.

The growth of the retail and the hospitality sectors would follow with 19-million sq. ft and 17-million sq. ft of demand over the next 5 years, the report said.

“The importance of NCR as an economic destination along with the upcoming preparations for the Commonwealth Games has ensured that NCR surpasses demands for these sectors over any other city," the report said.