As per a recently released CREDAI and CBRE report, in the next decade, there will be a significant economic transition in India. The workforce expansion and urbanization of India will improve investment opportunities in the real estate sector leading to significant growth in office, retail, housing, and warehousing space.
In the joint report released by both at a real estate conference, CBRE, a property consultant stated that the sector would witness a lot of expansion by 2030. The expansion would be led by new asset classes like coworking, coliving, student housing and real estate investment trusts (REITs).
As per the report, the office space stock will reach roughly one billion sq. ft by the year 2030 along with a flexible workspace of 8-10 percent of the total stock. It is estimated that by 2030, the retail shopping center stock will cross 120 million sq. ft by 2030 whereas the warehousing stock would touch nearly 500 million sq. ft by then.
By the year 2030, the report states, the residential real estate has the potential to approximately double from the existing stock of 1.5 million units in key cities.
The report released by CREDAI-CBRE said, “As the Indian economy transitions and its workforce expands, it will offer vast development and investment opportunities for the real estate sector.” Further, the growth of cities will influence the country’s built environment whereas technology, demographics and environmental issues will be the new driving agents.
Satish Magar, President of CREDAI commenting on the report said that as it is clearly evident from the increased investment, India continues to remain a high-priority market for long term growth potential.
Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East, and Africa, CBRE stated that in the wake of positive policy reforms and the birth of a strong workforce, the momentum of India’s economic growth is steady. He added that growth will take place in the next 10 years.
Other factors that will help in this growth trajectory are investment, improved governance, human capital upgrade, improved connectivity, infrastructure enhancement, integrated sustainability of the entire ecosystem and policy reforms.