CII-CBRE Report ‘Real Estate

CII-CBRE Report ‘Real Estate – A Relook’ identifies Smart Cities, Co-working, Affordable Housing and Logistics & Warehousing as key disrupters of Real Estate

– The report was launched at the XV edition of CII CBRE “REALTY 2019” in New Delhi

GEARED TOWARDS A DYNAMIC FUTURE: What’s is next for each of the RE disrupters:
Smart Cities:
• Infrastructure renewal in Tier II and III cities
• Development of townships as a result of new industrial corridors (under ‘Make in India’)
• Growing digital integration of civic services to ensure smooth delivery of service
Co-working spaces:
• By 2020, leasing by flexible space operators expected to touch 7-9 million, expansion from ‘gateway’ cities to ‘getaway’ cities
• More established corporates to opt for flexible spaces; large sized deal closures expected
• Flexible spaces unlikely to be limited to office buildings
• Free-addressing policies to boost operator expansion
Affordable housing:
• Housing demand remains concentrated in affordable and mid-end segments
• Projects launched in locations with basic physical and social infrastructure expected to see greater traction
• Given the improving affordability of the population, definition of affordable housing and mid-end housing expected to somewhat blur
Logistics and warehousing:
• Widespread deployment of IoT to create smarter warehouses with improved supply chain efficiencies
• Advent of bigger warehouses that are constructed at greater distances not only from each other but also from residential districts.
29th August 2019: CII in association with its knowledge partner CBRE, released a joint report ‘Real Estate – A Relook’ at the XV edition of its flagship conference on Real Estate – CII CBRE REALTY 2019. The report encapsulates how real estate, that witnessed decades of traditional approaches, is now going to be revolutionized by ‘disrupters’ that have initiated a new wind of demand in the sector, the role of policy reforms in giving it the much-needed regulatory push and the need for building future-ready talent to establish India on the map for world-class developments.

The CII-CBRE knowledge paper ‘Real Estate – A Relook’ was unveiled by Mr. Hardeep Singh Puri, Hon’ble Minister of Housing and Urban Affairs, Government of India (Independent Charge) in the presence of Mr. Anshuman Magazine, Chairman – CII Realty 2019 & Co-Chair, CII National Committee on Housing & Real Estate and Chairman & CEO – India, Southeast Asia, Middle East & Africa, CBRE along with Mr. Anil Saraf, Co-Chairman, CII Realty 2019 & CMD, ASF Group.

‘Real Estate – A Relook’ is a compendium of the key drivers which are shaping the Indian real estate and are instrumental in crafting the future of the sector. It enables a dialogue between all the stakeholders of the industry to revisit the plans, potential and approaches that will cumulatively shape new-age infrastructure.

The report also details the evolution of smart cities, co-working spaces, affordable housing, logistics and warehousing and sets context for the future. It further assesses the role of dedicated policy and regulatory reforms like RERA, REITs, Ease of Doing Business, Housing for All in enabling the much-needed transparency across the realty value chain. The role of innovative technologies along with emergence of PropTech in transforming the Indian Realty sector and the need for building ‘future-ready’ talent are also key attributes emphasized that will pave the way for the sector.

Addressing the real estate fraternity at the conference, Mr Hardeep Singh Puri, Hon’ble Minister of Housing and Urban Affairs, Government of India (Independent Charge) said, “The year 2018 was about reforms and revival, with strong policy change and increased attractiveness of India as an ideal investment destination. The realty sector is expected to generate over 17 million workforce and contribute to over 13% towards India’s economic contribution by 2025. Our aspiration, through the support of government initiatives, is to create the proofs-of-concept, the models and best practices that other cities around the country will learn from. 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 near future that can be successful if we work towards developing a new workplace strategy, integrated smart cities, expand affordable housing, a renewed focus on application of new technologies in the sector.”

While releasing the CBRE-CII report, Mr Anshuman Magazine, Chairman – CII Realty 2019 & Co-Chair, CII National Committee on Housing & Real Estate and Chairman & CEO – India, Southeast Asia, Middle East & Africa, CBRE said, “In the wake of positive policy reforms, emergence of a strong workforce, introduction of new technologies and growth of newer asset classes, the momentum of India’s realty sector is growing substantially. The theme of this year’s conference ‘Real Estate – A Relook’ reviews the emerging factors that will build the future of real estate sector. India has one of a kind growth story; real estate as the country’s growth propeller and we at CBRE are committed to be at the centre of this growth trajectory. The CII CBRE report ‘Real Estate – A Relook’ unveils a sectoral overview and outlines factors that will redefine real estate soon.”

Co-Chairman, CII Realty 2018 and Chairman & Managing Director, ASF Group, Mr. Anil Saraf said, “CII Realty is an interactive platform designed for its fraternity to discuss on the emerging industry trends and assess global practices that are influencing the sector. The Indian real estate sector is amidst a metamorphosis which is being shaped by rapid technological progress, changing policy scenario, shifting end-user demand and this report echoes that. At CII, we are committed to partner in this transformation and achieve a re-built real estate sector that is full of opportunities.”

In addition to Mr. Hardeep Singh Puri, Hon’ble Minister of Housing and Urban Affairs, Government of India (Independent Charge), the key attendees at the conference included Mr Sameer Gupta, Chairman, CII Northern Region & Chairman & Managing Director Jakson Group; Dr Mr Sunil Kant Munjal, Past President, CII and Chairman, Hero Enterprise; Mr Sanjaya Gupta, Managing Director, PNB Housing Finance Ltd., Mr. Sriram Khattar, MD, DLF; Mr Rahul Kapoor, Director – Smart Cities Ministry of Housing & Urban Affairs, Government of India; Dr K K Khandelwal, Chairman, Haryana Real Estate Regulatory Authority among others.

Here are the key trends listed in the report “Real Estate – A Relook”:

Real Estate Disrupters: What’s Hot & What’s Not?

Smart cities

· The growth of smart cities will be one of the influencing factors that will shape the future of the country’s real estate environment

· Infrastructure renewal in Tier II and III cities with widespread deployment of state-of-the-art surveillance systems and integrated intelligent traffic management systems that are expected to streamline basic amenities

· Launched of ‘100 Smart Cities Mission’ where the focus is on sustainable and inclusive development through the use of ‘smart’ solutions

· Development of townships as a result of new industrial corridors (under ‘Make in India’)

· By 2030, Delhi might overtake Tokyo as the world’s largest urban agglomeration. India will have 68 cities with a population of more than 1 million; up from 42 today

· One of the primary factors that needs to be adopted to witness this progress by 2030 is to strengthen inter-regional connectivity by developing an integrated transportation system

· Focus should also be on expanding affordable housing and developing efficient neighborhood planning along with driving sustainability in everyday life.

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