Real estate development has picked up pace with about 700 acres of land acquired for over $1.1 billion in the January-June period across eight cities for housing, office, retail, logistics and data centre projects. In the corresponding period last year, 600 acres were acquired for a value of about $0.9 billion, a report by industry body CII and property consultant CBRE India said on Wednesday.
“We are quite optimistic about the real estate sector. But we need to be cautious considering global factors,” said Anshuman Magazine, chairman and CEO, India, Southeast Asia, West Asia & Africa, CBRE.
He further said all segments of real estate will perform better in the 2022 calendar year than last year because of higher demand for apartments as well as commercial, data centre and warehousing spaces.
“In the first six months of this year, about 700 acres of land for more than $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.
Investments in real estate could grow by 10% this year to reach near the 2019 peak of over $6 billion. In the first half of 2022, investments in real estate grew by 4% year-on-year to $3.4 billion, the report highlighted.
With the buoyancy expected in the office segment, CBRE revised its office space absorption upwards to 53-57 million square feet by the end of 2022. In January-June 2022, 29.5 million sq ft of leasing activity was recorded, up 157% y-o-y.
The industrial & logistics sector is likely to clock a growth of about 12% on an annual basis, with leasing activity remaining range-bound at 28-32 million sq ft in 2022.