 "Land deals worth $1.1 bn closed in Jan-Jun across top 8 cities: CII-CBRE")
About 700 acres of land have been acquired for over USD 1.1 billion during January-June across eight cities to develop housing, office, retail, logistics and data centre projects, according to a CII-CBRE report.
Industry body CII and property consultant CBRE India on Wednesday released the report Indian Realty Outlook - Demystifying Future growth opportunities at a real estate conference here.
"We are quite optimistic about the real estate sector. But we need to be cautious considering global factors," said Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE.
He said all segments of real estate in the 2022 calendar year will perform better than last year, because of higher demand for apartments as well as commercial, data centre and warehousing spaces.
However, Magazine said there is a need for caution in view of rising interest rates, higher commodity prices and possible recession in US and European economies.
He also pointed out that land prices have risen slightly in many pockets and cautioned that development prices could be impacted if rates rise sharply.
Also Read
"In the first six months of this year, about 700 acres of land for more than USD 1.1 billion have been acquired across major cities for development of housing and other real estate asset classes," Magazine said.
The consultant said that developers are mainly buying land for development of housing projects in view of the strong upcycle that the residential segment is currently witnessing.
Institutional players have also been acquiring land for development of commercial and data centres, it added.
Magazine also highlighted that investments in real estate could grow by 10 per cent this year to reach near the 2019 peak of over USD 6 billion.
In the first half of 2022, investments in real estate grew by 4 per cent Y-o-Y (year-on-year) to USD 3.4 billion.
Magazine said more Real Estate Investment Trusts (REITs) would get listed on the stock exchanges to monetise rent-yielding office, retail and warehousing assets.
The consultant has revised office space absorption upwards to 53-57 million square feet by the end of 2022.
In H1 2022, 29.5 million square feet of leasing activity was recorded, up 157 per cent year-on-year.
The residential sector is likely to witness both sales and new launches to reach a decadal peak in 2022 and cross the 200,000-mark.
The industrial & Logistics sector is likely to clock a growth of about 12 per cent on an annual basis, with leasing activity remaining range-bound at 28-32 million square feet in 2022.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)