Page 27 - 10 Booming Real Estate & Logistics Companies in APAC 2022

FOCUS POINT

Real estate sector is one of the As per ICRA estimates, Indian firms INVESTMENTS/DEVELOPMENTS • Home sales volume across seven

most globally recognized sectors. are expected to raise >Rs. 3.5 trillion Indian real estate sector has witnessed major cities in India surged 113% YoY
It comprises of four sub sectors (US$ 48 billion) through infrastructure high growth in the recent times with to reach ~62,800 units in the third
housing, retail, hospitality, and and real estate investment trusts rise in demand for office as well as quarter 2021, from 29,520 units in

commercial. The growth of this sector in 2022, as compared with raised residential spaces. According to the same period last year, signifying
is well complemented by the growth funds worth US$ 29 billion to date. Colliers India, a property consultant, healthy recovery post the strict lock-
in the corporate environment and the The office market in the top eight institutional investments in the Indian
demand for office space as well as cities recorded transactions of 22.2 real estate sector are expected down imposed in the second quarter

urban and semi-urban accommoda- msf from July 2020 to December to increase by 4% to reach Rs. due to the spread of COVID-19 in the
tions. The construction industry ranks 2020, whereas new completions 36,500 crore (US$ 5 billion) in 2021, country.
third among the 14 major sectors in were recorded at 17.2 msf in the same driven by rising interest of investors • In November 2021, Ascendas India

terms of direct, indirect and induced period. In terms of share of sectoral towards capturing attractive valua-
effects in all sectors of the economy. bought Aurum Ventures’ 16-storey
occupiers, Information Technology tions amid the pandemic. According commercial tower in Navi Mumbai for

In India, the real estate sector is the (IT/ITeS) sector dominated with a to a recent report by Colliers India, Rs. 353 crore (US$ 47 million), making
second-highest employment gener- 41% share in the second half of 2020, private equity investments in Indian it the largest deal of a standalone
ator, after the agriculture sector. followed by BSFI and Manufacturing real estate reached US$ 2.9 billion in commercial tower by a global insti-
It is also expected that this sector sectors with 16% each, while Other the first half of 2021, which was a >2x tutional investor during the past few

will incur more non-resident Indian Services and Co-working sectors increase from the first half in 2020.
(NRI) investment, both in the short recorded 17% and 10%, respectively. According to the data released by years.
term and the long term. Bengaluru is Around 40 million square feet Department for Promotion of Industry • REA India-owned online real

expected to be the most favoured were delivered in India in 2021. It is and Internal Trade Policy (DPIIT), estate company Housing.com tied up
property investment destination for expected that the country will have construction is the third-largest with online legal assistance start-ups
NRIs, followed by Ahmedabad, Pune, a 40% market share in the next 2-3 sector in terms of FDI inflow. Construc- LegalKart, Lawrato, Vidhikarya and
Chennai, Goa, Delhi and Dehradun. years. India is expected to deliver tion is the third-largest sector in Vakil in 2021 to offer legal advice and

46 million square feet in 2022. terms of FDI inflow. FDI in the sector
MARKET SIZE assistance to homebuyers.
By 2040, real estate market will grow According to the Economic Times (including construction development
to Rs. 65,000 crore (US$ 9.30 billion) Housing Finance Summit, about 3 & activities) stood at US$ 52.48 billion • Top three cities—Mumbai (~39%),
from Rs. 12,000 crore (US$ 1.72 billion) houses are built per 1,000 people from April 2000 to December 2021. NCR-Delhi (~19%) and Bengaluru

in 2019. Real estate sector in India is per year compared with the required Some of the major investments and (~19%)—attracted ~77% of the total
expected to reach US$ 1 trillion in construction rate of five houses developments in this sector are as investments recorded in the third
market size by 2030, up from US$ per 1,000 population. The current follows: quarter of 2021.

200 billion in 2021 and contribute 13% shortage of housing in urban areas
to the country’s GDP by 2025. Retail, is estimated to be ~10 million units. • Between January 2021 and • India’s flexible space stock is likely
hospitality, and commercial real An additional 25 million units of September 2021, private equity to expand by 10-15% YoY, from the

estate are also growing significantly, affordable housing are required investment inflows into the real current 36 million sq. ft., in the next
providing the much-needed infra- by 2030 to meet the growth in estate sector in India stood at US$ three years, according to a report by
structure for India’s growing needs. the country’s urban population. 3.3 billion. CBRE.

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