CII-CBRE: top 8 cities had land sales totalling $1.1 billion between Jan-Jun

15 Sep 2022 , 08:04 AM

With leasing activity being range-bound at 28—32 million square feet in 2022, the industrial & logistics sector is predicted to grow by roughly 12% annually.

According to CII-CBRE research, 700 acres of property were purchased for more than $1.1 billion between January and June across eight cities to develop housing, office, retail, logistics, and data centre projects.

At a real estate conference on Wednesday, industry group CII and property advisor CBRE India issued the study Indian Realty Outlook – Demystifying Future growth possibilities.

“Regarding the real estate industry, we are fairly hopeful. But in light of variables at play globally, we must exercise caution “added Anshuman Magazine, chairman and CEO of CBRE’s operations in India, South-East Asia, the Middle East, and Africa, at the event.

The rising interest rates, greater commodity prices, and potential recessions in the US and European economies, according to the report, call for caution.

Additionally, he noted that land costs have increased slightly in several areas and warned that construction prices may be affected if interest rates rise significantly.

Institutional players have also started buying land for the construction of shops and data centres, the report said.

Magazine also noted that real estate investments could increase by 10% this year to close to the 2019 peak of around $6 billion.

Investments in real estate increased by 4% Y-o-Y (year over year) to $3.4 billion in the first half of 2022.

Leasing activity totalled 29.5 million square feet in H1 2022, up 157% from the same period last year.

Sales and new launches in the residential sector are anticipated to reach a decadal peak in 2022 and surpass the 200,000-unit threshold.

With leasing activity being range-bound at 28—32 million square feet in 2022, the industrial & logistics sector is predicted to grow by roughly 12% annually.

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