• CBRE India Market Outlook Report 2022
• Investments in realty expected to rise by 5-10%
• I&L leasing activity to grow more than 25%
• it will touch 35-37 million sq. ft.
• Gross office space absorption increase by 13-14%
(RegNews, March 23, 2022): CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, today released its ‘Real Estate Market Outlook 2022 – India’ report at the CII Annual Real Estate Conference – ‘Reinvigorating the Real Estate Industry in 2022 & Beyond’. The report highlights key trends and projections for the Indian Real Estate sector for the year 2022. During the event, CII also announced the election of Anshuman Magazine, Chairman & CEO, India, South East Asia, Middle East & Africa, CBRE, as the Chairman for CII (Northern Region) for financial year 2022-23.
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, I&L, residential and alternative real estate segments.
In 2022, we expect the sector to leverage the government’s continued focus on infrastructure development and industrial growth, with segments such as DC, logistics and manufacturing being the focal nodes. We also expect ESG to transcend sectoral boundaries and become central to business interests as investors, developers and occupiers imbibe health & wellness into their strategies while improving energy efficiencies and reducing their carbon footprint.
Mr. Anshuman Magazine, Chairman & CEO, India, South East Asia, Middle East & Africa, CBRE, said, “The second wave of the pandemic was a blip on the Indian economy and by extension to the real estate sector. We have come a long way since then. 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. In fact, a few sunrise sectors such as I&L are expected to surpass pre-pandemic levels as well in terms of leasing as well as supply addition. We also expect the India market for alternate segments such as DCs, life sciences, etc. to mature further, enabling investors to diversify their portfolios as well as provide more investment opportunities.
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. Business resilience and future investments are likely to see a positive impact on the segment overall with real estate decisions becoming a strategic consideration in the boardroom.”
Office – Positive momentum to sustain through 2022
Gross absorption in office space is expected to touch 45-47 million sq. ft. in 2022, a growth of about 13-14% from 2021. 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, Bangalore, 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.
• Physical offices are here to stay, along with hybrid working; occupier appetite for office expansion is strengthening.
• Workplace strategies would evolve to suit the new role of the office, as it becomes a centre of collaboration and means to improve productivity levels.
Top trends expected to shape 2022
• The ‘5G+’ workplace: An unprecedented generational convergence is likely by 2030: for the first time in history, four generations would occupy the workplace simultaneously.
• Proptech to lead CRE transformation in India by 2030: Six technologies that will dominate the real estate sector in 2022 include SaaS, Artificial Intelligence, Internet of Things, Robotic Process Automation, Virtual / Augmented Reality, and Blockchain.
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