India’s Industrial And Warehousing Leasing To Touch 20 Million Sf In 2018

CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, today shared the findings of its 2018Asia 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, signalling that the short-term disruptions caused by the implementation of the Goods and Services Tax (GST) have abated.

India’s office market also 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 are 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.

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, the renewed focus on attracting investments in the sector and enhanced transparency is changing the market dynamics. As the significant contributor to India’s GDP, there is an immense opportunity for the real estate sector to influence the growth prospects of the country.“

Sources: realtyfact.com

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