India’s Industrial And Warehousing Leasing To Touch 20 Million Sf In 2018; 17% Increase From 2017

OFFICE STOCK TO CROSS 600 MILLION SQ.FT.; UP 20% FROM 2016

OFFICE STOCK TO CROSS 600 MILLION SQ.FT.; UP 20% FROM 2016

New Delhi, April 30, 2018: CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, today shared the findings of its 2018 Asia Pacific Real Estate Market Outlook – India report. The report is part of a global research series released by CBRE every year, highlighting trends and dynamics across various segments in the real estate sector for the year ahead. According to the report, leasing activity in the industrial and warehousing segment is expected to touch 20 million sq.ft. in 2018, up 17% from 2017. The segment has gained significant momentum over the past few years, with leasing touching 10 million sq.ft. in 2016 and 17 million sq.ft. in 2017, signaling that the short-term disruptions caused by the implementation of the Goods and Services Tax (GST) have abated.

India’s office market too has recorded robust activity over the past two years. In 2016, total office stock crossed 500 million sq.ft. and is expected to cross 600 million sq.ft. by end-2018, a 20% jump in two years. In fact, CBRE predicts that over the next two years, occupiers are expected to spend almost USD 48 million on leasing office space in India while new commercial assets worth approximately USD 6 billion would be completed.

From an investment perspective, increasing transparency and successful implementation of several regulatory reforms is giving an impetus to the sector. In the year ahead, CBRE expects capital inflows into real estate to witness an uptick, with office, retail, industrial and land parcels leading the activity.

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Anshuman Magazine, Chairman, India and South East Asia, CBRE said, “We expect 2018 to be the turnaround year for the real estate ecosystem in India. Significant infrastructure development across key cities, improvement in ease of doing business, renewed focus on attracting investments in the sector and enhanced transparency are changing the market dynamics. As significant contributor to India’s GDP, there is immense opportunity for the real estate sector to influence the growth prospects of the country.“

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The year ahead looks extremely positive for the real estate sector in India. The establishment of a regulatory authority, focus on infrastructure development and better alignment between developer offerings and the actual needs of the consumer are leading to a positive transformation of India’s real estate landscape.