Real Estate Investing Requires Increased Selectivity Amidst Evolving Trends

India Real Estate Market Update

Key Takeaways:

• The Indian real estate market is experiencing a shift from price-driven demand to capital and commercial demand.
• Institutional money is flowing into the sector, with a focus on specific assets, locations, and developers.
• Brookfield, Knight Frank, and The House of Abhinandan Lodha experts highlighted the importance of selectivity in capital deployment.

Market Trends:

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• Demand for office space remains stable, with India serving as a capability hub for global companies.
• Leasing cycles are extending, and decision-making is taking longer, indicating a cautious approach from occupiers.
• Tier 2 and emerging cities are experiencing growth driven by infrastructure and local demand.

Investment Insights:

• The real estate market is no longer a one-way bet; it's more selective, structured, and less forgiving.
• Individual investors should focus on specific segments and locations, as different parts of the market will behave differently.
• The premium housing market may slow if sentiment weakens.

Expert Perspectives:

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• Ashank Kothari, MD - Real Estate, Brookfield, emphasized the importance of selective capital deployment.
• Gulam Zia, International Partner & Senior Executive Director, Knight Frank, highlighted India's shift from a cost center to a capability hub.
• Abhinandan Lodha, Founder & Chairman, The House of Abhinandan Lodha, cautioned that not all segments will move together and that different segments will behave differently.