India 2030 – Exploring the Future

CREDAI - CBRE report “Exploring the Future” identifies key trends paving the way for growth of Real Estate in 2030

Tue, 2019-Aug-06 22:36

Tel Aviv, Israel, August 6, 2019: CREDAI in association with its knowledge partner CBRE, today released a report “India 2030 – Exploring the Future” at its 19^th 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 3^rd 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

Key dignitaries such as Mr Benjamin Netanyahu, Prime Minister Israel, Dr. Yifat Shasha-Biton, Honourable Minister of Construction & Housing of Israel and Member of Knesset, Mr. Ron Huldai, Mayor of Tel Aviv and Mr. Avraham Albert Benabou Former Israeli Diplomat and First Israeli to the Peace Keeping Forces of the United Nations graced the event with their presence.

The theme for this year ‘Where Resilience Meets Excellence’ showcases a one of a kind growths stories that highlights how India’s real estate landscape has undergone a significant transformation, leading to long term progressive results. Resembling India’s growth story, the economy of Israel today, stands as an optimal testimony of resilience in the business economy. Building on the future prospects and current efforts, the newest edition of CREDAI NATCON, powered by CBRE aims to build a case example for the industry stalwarts to learn how Israel has reinvented its legacy and fortified its roots for bigger and better outcomes.

For more information on NATCON please visit http://credainatcon.com/

About CREDAI and NATCON

Established in 1999, The Confederation of Real Estate Developers’ Association of India, is the apex body for private real estate developers in India, representing over 12000 developers through 21 states and 203 city chapters across the country. CREDAI has organized the industry and is accepted as trusted partner with Government representatives, policy makers, investors, finance companies and consumer.

The National Convention of CREDAI, called NATCON is CREDAI’s most important event on India’s real estate sector. The event brings together all the stakeholders of real estate on one platform to exchange ideas, share best practices and discuss various issues and aspects of the sector. Over the last 15 years, the event has witnessed an average attendance of about 800 members annually apart from experts from the real estate sector, senior professionals from the financial world and ancillary industries. NATCON enables CREDAI members to understand emerging global trends in the real estate industry.

About CBRE Group, Inc

CBRE Group, Inc. (NYSE: CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates) and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

For more information, please contact:

CREDAI

Meenakshi Arora/ Stephanie Bhandari

+91 9911639410/ +91 9555852324

meenakshi@credai.org/ stephanie.bhandari@mslgroup.com