Growth Trajectory of Indian Real Estate Sector: A Report by CREDIA & CBRE
In the next decade, India’s economic traction, urbanization, and workforce expansion will give an immense boost to investment opportunities in the real estate sector. As per the recent report by CBRE & CREDAI, this investment opportunity will further lead to significant growth in retail, office, housing & warehousing space. Further, the reports also stated that the real estate sector would tremendously expand by 2030 which will be led by new asset class quoting an example of student housing, co-living, and co-working spaces.
The same report further stated that the stock of retail shopping centers is expected to cross 120 million sq. ft by 2030, while warehousing stock is estimated to touch 500 million sq. ft The office spaces stock is expected to reach one billion sq. ft by 2030, with 8-10% of the total stock accounting for flexible workspaces. Further, the report also suggested that by 2030, the residential real estate can double from the current inventory of 1.5 million units in the key cities of our country.
According to the report, with expansion in India’s workforce and transition in the economy, immense investment opportunities will crop up for vast development of the real estate sector. It further highlighted that the growth of the cities in our country is also going to be influenced by India’s overall growth, whereas demographics, environmental & technological issues will become the new drivers of growth. Commenting on the report, an official from CREDAI said, it is evident from the investment flow in India which has increased over the last few years that our country will continue to remain a high-priority market for the long term growth potential for the investors all over the world.
An official from CBRE further stated that the emergence of a healthy workforce and positive policy reforms shall give the impetus to the desired India’s economic growth over the next ten years. As per the report, the factors which will further influence the trajectory of Indian growth are infrastructure enhancement, improved governance, investments, human capital upgrade, and integrated suitability of the entire ecosystem.