Real Estate: Housing, office, I&L segments expected to maintain growth trajectory in new year, says CBRE

According to a report by a real estate consultant, the Indian real estate sector is expected to maintain its growth trajectory over the next year as the country has risen up the global business climate rankings and continues to be an attractive, flexible and cost-effective investment destination. CBRE. It added that all segments of the realty sector including office space, residential and industrial and logistics are expected to do well in the new year.

With the resumption of economic activities, the country’s real estate sector will make a strong comeback in 2022.

office block

CBRE said that global headwinds and the possibility of an economic slowdown in advanced economies are expected to have a marginal impact on occupier sentiment and leasing activity in 2023. To attract occupier interest.

“Many businesses are likely to value initiatives such as enhancing indoor air quality, integrating touchless technologies, fitness facilities, etc. to improve the health and well-being of employees. As businesses adapt to an increasingly distributed workforce, flexible space is likely to remain an attractive option,” it said.

residential block

CBRE said positive homebuyer sentiments are expected to drive housing sales and new launches in 2023. Moderating the pace of sales.

“The decline in unsold inventory levels to continue in the near term. Growth is expected in the premium and luxury segments; However, the mid-end and budget segments will still garner a major share of sales,” it said.

retail segment

“While inflation may put pressure on the Indian economy going forward, the rebound in brick-and-mortar retail sales last year is expected to continue into 2023. The ‘experience’ has become a critical frontier in bridging the retailer-consumer gap,” CBRE said.

industrial and logistics segment

The realty consultant added, “Going forward, we expect to see a recovery in leasing activity, supported by the continued policy push by the government. The need for occupiers and developers to strengthen their ESG performance is expected to increase; New-age warehouse specifications will now include green certification as well as features such as energy saving and green operations.”

It added that the focus on operational efficiencies will also lead to an increase in ‘flight-to-quality’ leasing. With increasing awareness about wellness and sustainability, as well as more organized players entering the market, developers will consider initiatives such as smart warehouses, touchless technologies and air quality enhancement in their warehouses.

investment in realty sector

Investment activity is expected to remain strong, mainly in the land acquisition space for greenfield development in office and residential sectors, CBRE said. Looking at the properties put up on the block for sale, the area is likely to see some big ticket deals in the retail and hospitality sectors.

Investor categories in alternative/emerging sectors, particularly data centres, may continue to see interest.

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