Real Estate 2030 - key trends paving the way for growth

Real Estate 2030 - key trends paving the way for growth
  • By 2030, residential real estate has the potential to almost double from the current stock of 1.5 million units in key cities
  • Office stock to grow from 600 mn sq. ft. in mid-2019 to 1 billion sq. ft. by the end of 2030; flexible to become mainstream – comprise 8-10% of the total office stock
  • Warehousing stock to touch 500 mn sq. ft. by 2030; share of grade A stock to witness continuous increase
  • Retail shopping centre stock to cross 120 mn sq. ft. by 2030
CREDAI in association with its knowledge partner CBRE, released a report “India 2030 – Exploring the Future” at its 19th Annual International Convention, NATCON 2019 in Israel. The report encapsulates the potential of Indian economy by 2030 and its implications on the growth of Indian Real Estate sector. As per the report, India is projected to have a USD 9 trillion economic opportunity by 2030, wherein the per capita income could touch USD 5,625 for a population of about 1.5 billion and required annual spending on infrastructure will touch 7-8% of its GDP.

Emergence of India’s digital, sharing and consumer economy, evolution of workplace strategy, technology will also bode well for the industry. The demand for residential and office stock will continue to grow at the back of policy reforms on Affordable Housing and close-integration of start-ups and conglomerates to offer tech-enabled services. Furthermore, Retail and Logistics industry which have mostly remained in the background till now will become significant contributors as India will consolidate its position as the 3rd largest consumer market behind US, China.

CREDAI Chairman, Mr. Jaxay Shah said, “The correlation between the growth of some of the most developed economies and Realty has been well established for years and this report also echoes that. With our current government, we all are dreaming of a vision of a New India which is full of opportunities and implies progressive growth for businesses, homebuyers and the community at large and we at CREDAI are committed to transforming realty to achieve that.”

On the occasion of the unveiling of the report and addressing the experts from the Real-Estate fraternity, CREDAI President, Mr. Satish Magar said, “India continues to remain a high-priority market for its long term growth potential as is evident from the increased investment flows in the last few years. Government’s 5 trillion-dollar mission & vision of a ‘New India’ imply that top industries contributing to our economy like Real estate need to usher in transformative measures which can help shape these goals. This report is a milestone in this direction as it not only determines the trends which need to be leveraged but also presents an analytical view on the next decade where we can achieve even more if we work towards developing a new workplace strategy, integrated transport systems, expand affordable housing and a renewed focus on application of sustainability in everyday life.”

Speaking on the occasion, CREDAI’s President Elect, Mr. Harshvardhan Patodia, said, “CREDAI NATCON is an experiential and interactive platform for its fraternity members, fellow developers and colleagues to learn the know-how of the trends and global best practices permeating the industry and the sector. The theme resilience to excellence compliments well with the present state of the Indian Real Estate industry that has merged the resilient phase, slow and disrupted but steady with a wave of upward and positive growth in the times to come.”

While releasing the report, Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE said, ““In the wake of positive policy reforms and the emergence of a strong workforce, the momentum of India’s economic growth is steady and it will only grow stronger in the next 10 years. The factors which will further facilitate this growth trajectory are investment, improved governance, human capital upgrade, improved connectivity, infrastructure enhancement, strengthened institutions (governance, administration and law), policy reforms and integrated sustainability of the entire ecosystem. The theme of this year’s conference ‘Where Resilience Meets Excellence’ has an easy comprehension – patience and unapologetic perseverance. India has a one-of-a-kind growth story, with real estate as the country’s growth propeller and at the cusp of transformation. Therefore, we at CBRE are committed to be at the center of this growth trajectory. The CBRE CREDAI report ‘INDIA 2030- Exploring the future’ unveils a sectoral overview and outlines what is in store for India in the coming decade.’

Here are the key trends listed in the report:

Economic trends
  • Bringing woman workforce to boost Labour Force participation – India’s Labour Force Participation Rate (LFPR) was only 51.9% in 2018, a sharp decline from 55.8% in 2008. The drop was primarily due to comparatively lower female participation in workforce, especially in rural areas.
  • Reduce International migration from India to widen in-house talent base - The total number of workers who have migrated from India has declined since 2015 due to the economic slowdown in the Arab countries, where the largest chunk of Indian migrants resides. Given the skill sets of these migrants, their presence in India would contribute significantly to the entrepreneurial evolution in the country over the next 10 years
  • Wide scope for Upskilling - More than half of Indian workers will require reskilling by 2022 to meet future talent demands. In order to keep up with the demands of its young populace, India would have to focus on education, skill development, innovation, productivity enhancement and technology adaptation.
  • Urban cities are engines of growth - By 2030, India’s urban population will contribute as high as 75% of the GDP, up from 63% at present. However, this projection can only become a reality if the pressures on the physical and civic infrastructure systems of our cities is eased. Most Indian cities lag on key quality of life parameters and are plagued by challenges such as poverty, lack of affordable housing, traffic congestion, overcrowding, environmental degradation and air pollution.
  • Infrastructure is vital for the creation of liveable cities - India needs to spend 7-8% of its GDP on infrastructure annually to boost public and private investment in infrastructure.
Realty trends
  • Scale of development in residential households - The number of households is expected to surge with close to 386 million households and almost 40% of Indians being urban residents by 2030. The scale of development is likely to change significantly as from mere standalone buildings, developers are expected to venture into integrated townships, theme-based townships, developments linked to economic activity and even self-sustaining mini townships/cities.
  • Fragmentation in the Indian residential segment - By 2030, residential real estate has the potential to almost double from the current stock of 1.5 million units in key cities. The increasing millennial and generation Z population is expected to be account for 77% of the overall working population in India by 2030. The housing needs of these such population groups are slightly unique. They look for convenience, service and a frictionless experience while buying/leasing a residential property.
  • Affordable housing will be a key trigger for demand - Demand will remain concentrated in the affordable segment and will gradually shift towards the mid-end segments. Affordable housing will remain the dominant segment in the coming years with a total of 10 million PMAY (U) units to be delivered by 2020 itself
  • Maintaining the momentum: Office stock to grow from 600 mn sq. ft. in mid-2019 to a billion sq. ft. by end of 2030 and Flexible to become mainstream – comprise 8-10% of the total office stock.
  • The Untapped Sector: Warehousing stock to touch 500 mn sq ft by 2030 and share of grade A stock to witness continuous increase
  • The Retail Opportunity: By 2030, 9 out of 10 Indians over the age of 15 will be online and retail shopping centre stock to cross 120 mn sq ft by 2030

CIL floats tenders for ₹4,970-cr rail corridor

For the quicker evacuation of coal from open cast mines in Chhattisgarh, Coal India Ltd (CIL) has floated twin tenders for the construction of a 135 km east-west rail corridor at an estimated cost of ₹4,970 crore through Read More ...

CapitalLand plans ₹450-cr warehousing space in NCR

The Singapore-based CapitalLand has initiated negotiations to develop 3 million square feet of warehousing space at Sohna near Gurgaon in the NCR region. Investors and e-commerce companies are keen to invest in a segment Read More ...

RLDA invites RFP for leasing 3,719 sq mt land in Chennai

The Rail Land Development Authority (RLDA) has invited a Request for Proposal (RFP) for leasing 3,719 square metre land parcel at East Tambaram, Chennai. The land parcel is located along Bharathamadha Street, near Tambaram Read More ...

UP Govt expedites ₹5,800-cr new expressway in Gorakhpur

The UP government has expedited the process of land acquisition for 91-km expressway project in Gorakhpur. The mega project crisscrossing four districts including Gorakhpur, Sant Kabir Nagar, Ambedkar Nagar Read More ...

KRCL commences work for ₹658-cr tunnel in Kerala

The Konkan Railway Corporation Limited (KRCL) has launched the groundwork for the construction of a 6.8 km long tunnel between nearby Anakkampoyil and Meppadi in Wayanad, connecting Kozhikode and Wayanad districts Read More ...

DMRC invites bids for ₹1,958-cr Patna metro project

The Delhi Metro Rail Corporation (DMRC) has invited bids for the construction of the first underground package (PC-03) of Patna Metro's 14.05 km Line-2 of the Phase 1 project which will connect Patna Junction Railway Read More ...

IRCON secures ₹400-cr bridge contracts

IRCON International has secured contracts for the construction of nine road-over-bridges (ROBs) from the Ministry of Railways involving an investment of ₹400 crore. The work has been awarded through competitive bidding Read More ...

NHAI unveils ₹1,876-cr Villupuram-Pondicherry Highway

To ensure smooth flow of vehicular traffic between Villupuram and Pondicherry, NHAI has proposed to expand the 67-km stretch into a four-way bypass road with a 45m-60m right of way (RoW) and grade separators at an Read More ...

J&K gets ₹3,848-cr Baramulla-Kupwara railroad project

The railway has conducted a satellite survey for the construction of a railroad from Baramulla to Kupwara in northern Kashmir entailing an investment of ₹3,848 crore. For the project, which was approved by the central Read More ...

Railway pushes ₹4,085-cr railway project in Bengal

The northeastern railway has hastened the Sivok-Rangpo 44.96 km long rail line involving an investment of ₹4,085 crore. Out of the total length, 41.55 km falls in West Bengal and 3.41 km in Sikkim. An investment ₹682 crore Read More ...

Centre approves ₹1,500-cr AP Coastline projects

The ministry of shipping has approved coastline infrastructure projects of ₹1,500 crore in Andhra Pradesh. The ministry is taking up these ventures for the improvement of Kakinada anchorage port under the Sagarmala Programme Read More ...

NHIDCL builds tunnelling network along the border

The Centre has fast-tracked the process of preparing DPR for multiple tunnels including the Shinkun La Tunnel connecting Ladakh with Lahaul and Spiti district of HP. The work on the 13.5 km long tunnel connecting the two Read More ...

Indian Railway takes up 513 new line projects on zonal level

Indian Railways has taken up 513 new line rail projects including Gauge Conversion and Track Doubling on Zonal levels and as of now, all these projects are in different stages of planning, sanction and execution. The completion Read More ...

TBM T61 provides breakthrough to Mumbai Metro Line-3

Tunnel Boring Machine (TBM) T61, also called Tapi-1, operated by the J Kumar Infraprojects – China Railway Tunnel Group JV made a breakthrough at Chhatrapati Shivaji Maharaj International Airport's Domestic Terminal-1 Read More ...

Ashiana Housing plans ₹400-cr Realty Projects

Ashiana Housing has targeted to invest ₹400 crore to launch a score of new projects in the current fiscal. MD Vishal Gupta informed that the company is looking for partnerships with landowners for expansion of its business Read More ...

REPL secures multiple Consultancy Contracts in AP and Odisha

Rudrabhishek Enterprises Ltd (REPL) has bagged two consultancy contracts in Odisha and Andhra Pradesh. Pradeep Misra, CMD, REPL, informed that in Andhra Pradesh, the Medical Services & Infrastructure Development Corporation Read More ...
NBM&CW

New Building Material & Construction World

New Building Material & Construction World
MGS Architecture

Modern Green Structures & Architecture

Modern Green Structures & Architecture
L&ST

Lifting & Specialized Transport

Lifting & Specialized Transport
II&TW

Indian Infrastructure & Tenders Week

Indian Infrastructure & Tenders Week