India's commercial property sector is strong and stable: Report

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The Royal Institution of Chartered Surveyors (RICS) Global Commercial Property Monitor Q1 2023 saw the results that the reading of the headline Commercial Property Sentiment Index (CPSI) improved slightly from -15 to -11 in the final three months of 2022. APAC in comparison with America’s CPSI showed significant improvement from -21 to -4. The CPSI of China went from -44 to -7.

In India, overall occupier demand remained strong and stable with a net balance of +52, with this positivity is broadly equal throughout each commercial sector (office, retail and industrial). Looking towards the future, India’s commercial property market displays many positive signals, with capital value expectations in each sector (office, retail and industrial) all expected to rise over the next twelve months. This is mirrored by rent expectations for the next three months which all strongly expect rises. The twelve-month expectation net balances for rentals and capital values saw that then countries India, Saudi Arabia, and Singapore share similar places which encompasses those countries where projections for both variables are positive majorly but not specifically made up of APAC and MEA markets. On the opposite side of the comparison, countries like the United States, France, and Belgium acquire places where expectations are negative for values and rents.

Deben Moza, FRICS, MCA, Senior Executive Director ‑ Head of Project Management Services, Knight Frank (India) Pvt Ltd., said, “The latest Commercial Property Sentiment Index (CPSI) presents a mixed picture of the global real estate environment. Despite increasing interest rates in many countries, a stronger macro environment and robust labor markets have balanced the trend. CPSI in APAC has shown a significant improvement, primarily driven by a shift in sentiment in China and a stable growth environment in India. However, credit conditions continue to deteriorate across the globe due to more restrictive lending standards. In contrast, the Indian market appears to be picking up and remaining stable due to changing policy landscape, budget allocations for infra and related sectors, and other initiatives as a boost to business. Additionally, with the world’s largest population and the growth of the online economy, the segments of Retail, Data Centres, Industrial & Warehousing, and associated areas are experiencing heavy growth. Also, the rise of the Indian middle class is pushing the residential demand in India.”

Source: economictimes.indiatimes.com

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