Real estate sector’s growth prospects in 2024 look promising

financialexpress.com:

As major economies of the world grappled with recession, Indian economy witnessed significant growth across sectors on the back of strong fundamentals, robust demand, and government-led investments. As per IMF’s World Economic Outlook Report in October 2023, Indian economy expanded by 7.2% in FY23, the highest amongst major economies of the world. Following the same trend, it is anticipated to grow by 6.3% in FY24 compared to 3% growth in the world economy. As a result, the real estate sector, which contributes significantly to India’s GDP and registered heightened real estate activities during the current year, is expected to maintain its growth momentum in 2024 as well.

Office market is projected to grow in 2024 as more and more companies have mandated work-from-office policies. With an increasing number of employees returning to the workplace, companies are anticipated to expand and lease new office spaces. However, companies will exercise caution while leasing owing to the global macroeconomic uncertainty.

Flexible spaces are likely to gain traction as they provide flexibility to their tenants in these uncertain times. In our recent report ‘Flexing the Workplace: Back to Office’, we witnessed a shift in demand for flexible spaces from small and medium-scale enterprises to large conglomerates. Presently, flexible spaces have around 53.4 Mn sq ft of stock which is estimated to cross 81 Mn sq ft in the next 2 years with increased adoption of flexible spaces by large enterprises.

Additionally, as the global community intensifies efforts to address climate change, the office sector is expected to emphasize sustainable designs and renewable sources of energy.

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