India's real estate sector on growth trajectory: CREDAI-CBRE report
The report estimated that office space stock will touch one billion sq ft by 2030.
Tel Aviv: India's economic transition, workforce expansion and urbanisation will boost investment opportunities in real estate sector in the next decade, leading to significant growth in housing, office, retail and warehousing space, says a CREDAI and CBRE report.
In its joint report released at a real estate conference held here, property consultant CBRE said the sector would expand tremendously by 2030, led by new asset classes such as coworking, coliving, student housing and real estate investment trusts (REITs).
The report estimated that office space stock will touch one billion sq ft by 2030, with flexible workspace accounting for 8-10 per cent of the total stock.
The retail shopping centre stock is estimated to cross 120 million sq ft by 2030, while warehousing stock could touch 500 million sq ft by then.
By 2030, residential real estate has the potential to almost double from the current stock of 1.5 million units in key cities, the report said.
"As the Indian economy transitions and its workforce expands, it will offer vast development and investment opportunities for the real estate sector," CREDAI-CBRE report said.
The growth of cities is going to further influence the country's built environment, while technology, demographics and environmental issues will become the new value drivers, it added.
Commenting on the report, CREDAI President Satish Magar said, "India continues to remain a high-priority market for long term growth potential as is evident from the increased investment flows in the last few years.
"In the wake of positive policy reforms and emergence of a strong workforce, the momentum of India's economic growth is steady and it will only grow stronger in the next 10 years," said Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.
The factors which will further facilitate this growth trajectory are investment, improved governance, human capital upgrade, improved connectivity, infrastructure enhancement, strengthened institutions, policy reforms and integrated sustainability of the entire ecosystem, he added.