CREDAI and CBRE latest report reveals the real estate sector of India is on a growth path.

By Abhay Shah, Realty Quarter

According to the CREDAI and CBRE report, the economic transition, employment expansion and urbanization in India will boost investment opportunities in the real estate sector in the coming decade, resulting in considerable growth in housing, office, retail and warehousing.

Property consultant, CBRE has reported that the industry will grow tremendously until 2030 in a joint report on the real estate sector published at a conference, led by new asset classes such as co-working, co-living, student housing and real estate investment trusts (REITs).

The report estimated that by 2030 the office space stock will reach a billion sq ft and that the flexible workspace will represent 8-10% of the total stock. It is projected that by 2030, retail shopping centres stock will reach 120 million sq ft and warehousing stock will reach 500 million sq ft at that time.

Residential properties could nearly double the current inventory of 1.5 million units in key towns by 2030, said the report.

“As the economy transitions and its workforce expand, it will provide huge opportunities for real estate development and investment,” said the CREDAI-CBRE report.

The development of the towns will further influence the built environment of the country, while the fresh value drivers will be technology, demographics and environmental issues.

CREDAI President Satish Magar commented on the report: “India continues to remain a high priority market for long-term growth potential as demonstrated by the increased investment flows in recent years.

“There is a steady growth momentum in India as a result of favourable policy reforms and powerful labour development and will only become stronger in the next ten years,” said Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.

Investment, improved governance, human capital upgrades, improved connectivity, improved infrastructure, strengthened institutions, policy reforms, and integrated sustainability for the whole of this ecosystem are all factors that will further facilitate this growth path, he added.