Home / News / India /  Land deals worth $1.1 bn closed between January-June across top 8 cities: Report

During January-June period, around 700 acres of land have been acquired for over $1.1 billion across eight cities to develop housing, office, retail, logistics and data centre projects, a report by CII-CBRE said on 14 September.

Property consultant CBRE India and industry body CII 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," CBRE's Chairman & CEO for Anshuman Magazine, Chairman & CEO said.

Adding more, Anshuman Magazine said that all 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.

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Though Magazine cited 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.

In view of the strong upcycle that the residential segment is currently witnessing, the developers are mainly buying land for development of housing projects, the consultant added.

Institutional players have also been acquiring land for development of commercial and data centres, CBRE added.

Investments in real estate grew by 4 per cent Y-o-Y (year-on-year) to $3.4 billion in the first half of 2022.

More Real Estate Investment Trusts (REITs) would get listed on the stock exchanges to monetise rent-yielding office, retail and warehousing assets, Magazine said.

By the end of 2022, the office space absorption upwards to 53-57 million square feet, the consultant said, adding, 29.5 million square feet of leasing activity was recorded in H1 2022, which is 157 per cent year-on-year.

The report said the residential sector is likely to witness both sales and new launches to reach a decadal peak in 2022 and cross the 200,000-mark.

While the industrial & logistics sector is likely to clock a growth of about 12 per cent on an annual basis, with leasing activity remaining range-bound at 28-32 million square feet in 2022.

With PTI reports.

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