Commercial office stock in India is expected to cross 600 million square feet by the end of 2018, which is a 20 per cent jump in two years, as per the India report on ‘Asia Pacific Real Estate Market Outlook 2018’ shared by CBRE, a real estate consulting firm.
It has also predicted that over the next two years, occupiers are expected to spend almost $48 million on leasing office space in India while new commercial assets worth approximately $6 billion would be completed.
The report, which is a part of a global research series, is released by CBRE every year, highlighting trends and dynamics across various segments in the real estate sector for the year ahead.
Commercial office stock includes the total area available for office space in India.
On the housing market in 2018, the report says that demand would be driven by ready-to- move-in properties. Also, affordable housing is likely to play a crucial role in the country’s residential market this year.
Another finding predicts that leasing activity in the industrial and warehousing segment is expected to touch 20 million square feet in 2018, up 17 per cent from 2017. “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”, said Anshuman Magazine, Chairman, India and South East Asia, CBRE.
This year, the firm expects capital inflows into real estate to witness an uptick, with office, retail, industrial and land parcels leading the activity.