Land deals worth $1.1 bn closed in Jan-Jun across top 8 cities
About 700 acres of land have been acquired for over USD 1.1 billion during January-June across eight cities to develop housing, office, retail, logistics and data centre projects, according to a CII-CBRE report.
Industry body CII and property consultant CBRE India on Wednesday released the report Indian Realty Outlook - Demystifying Future growth opportunities at a real estate conference here.
"We are quite optimistic about the real estate sector. But we need to be cautious considering global factors," said Anshuman
Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE.
He said all segments of real estate in the 2022 calendar year will perform better than last year, because of higher demand for apartments as well as commercial, data centre and warehousing spaces.
However, Magazine said there is a need for caution in view of rising interest rates, higher commodity prices and possible recession in US and European economies.
He also pointed out that land prices have risen slightly in many pockets and cautioned that development prices could be impacted if rates rise sharply.
"In the first six months of this year, about 700 acres of land for more than USD 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.
Magazine also highlighted that investments in real estate could grow by 10 per cent this year to reach near the 2019 peak of over USD 6 billion.
In the first half of 2022, investments in real estate grew by 4 per cent Y-o-Y (yearon-year) to USD 3.4 billion.
Magazine said more Real Estate Investment Trusts (REITs) would get listed on the stock exchanges to monetise rentyielding office, retail and warehousing assets.