News: Total investments in real estate expected to rise by 5-10% in 2022: Report-23-03-2022
Gross office space absorption to increase by 13-14% year-on-year in 2022 and is expected to touch 45-47 million sq ft. CBRE expects around 51-53 million sq. ft. of new office space to become operational in 2022, up by about 4-5% on an annual basis.
NEW DELHI: Total investment s in real estate expected to rise by 5-10% in 2022 to reach near the prepandemic levels of 2019, according to a recent report by CBRE South Asia, a real estate consulting firm. According to the report, despite the continued cyclical upswings and downswings of the COVID-19 pandemic, the Indian real estate sector has remained largely resilient. It is now showing signs of revival, on the back of India’s strong position as a driver of the global economy as well as promising growth projections across segments such as office, Industrial & Logistics, residential and alternative real estate segments. Anshuman Magazine, chairman & CEO, India, South East Asia, Middle East & Africa, CBRE, said, "Leasing activity across all sectors and segments has witnessed an uptick in the past 6 months and we expect this growth to continue into 2022. We also expect post-pandemic structural changes to accelerate further. For instance, the focus on ESG is expected to accentuate across all sectors, even as tech such as AI and AR / VR finds more takers in the sector."
Gross office space absorption to increase by 13-14% yearon-year in 2022 and is expected to touch 45-47 million sq ft. Technology firms would continue to dominate leasing in 2022 while flexible space operators, BFSI, engineering & manufacturing and life sciences segment are expected to contribute to the growth in office space take-up significantly. Similar to 2021, Bengaluru, Hyderabad and Delhi-NCR are expected to continue to drive transaction activity in 2022. CBRE expects around 51-53 million sq. ft. of new office space to become operational in 2022, up by about 4-5% on an annual basis. Continued policy push, a revival in economic activity coupled with a low mortgage rate regime are some of the key factors driving residential growth. The strong sales momentum witnessed post Q3 2020 has provided developers an incentive to launch new projects / new phases in existing projects. An uptick in new residential projects expected across Pune, Mumbai, Hyderabad, Delhi-NCR and Bengaluru.
Capital values across both the mid-end and high-end segments are expected to witness an uptick in 2022 due to factors such as robust sales momentum and rising input material cost that could force developers to pass on the increase to homebuyers. However, asset pricing trends are expected to remain divergent across sub-segment types and within cities as the level of unsold inventory and growth in sales are expected to dictate capital value movement.
