A leading market research and data analytic firm has recently released it’s Indian construction industry 2013 forecasts and predictions. According to the report, metropolitan cities in India like Mumbai, Delhi, Pune, Bangalore, Chennai and Hyderabad are going to see strong growth in both commercial and retail sector. However, Residential sector may see a slowdown as the cost of construction and holding the land for the projects will keep rising.
Indian construction industry 2013: Important take away from the report
- Although most of the cities of India will see an increase in residential launches in 2013, the southern cities of Bangalore and Chennai will witness a decline in launches as compared to 2012.
- According to Indian construction industry 2013 forecasts, Mumbai, NCR-Delhi, Bangalore and Chennai will grab the lion’s share of contribution in total commercial space absorption in 2013, certainly within the range of 74-76%.
- In terms of commercial real estate investment potential, Mumbai, Bangalore and Delhi NCR will continue to be of highest interest to big ticket investors focused on real estate in 2013.
- Year 2013 will bring a larger-than-usual number of NRI investors into the commercial space arena. This is because NRIs are currently enthused by the prevailing exchange rate benefits and the fact that commercial real estate capital values are still 15-25% under their 2007-08 peak levels.
- In 2013, new organized retail project completions will increase significantly (by 109% y-o-y). Chennai, Hyderabad, Kolkata and Pune will be among the major contributors to this increase, with a 53% share of the country’s overall mall supply for 2013.
- India`s major cities like Mumbai, NCR-Delhi, Bangalore, Chennai, Pune, Hyderabad and Kolkata will see the addition of close to 9.5 million square feet of mall space in 2013, according to Indian construction industry 2013 report. Mumbai, NCR-Delhi, Bangalore and Chennai will together contribute 70% of the total retail space absorption. Other cities like Pune, Hyderabad and Kolkata will account for the remaining 30%.