India will have REIT-eligible commercial-office and retail properties that stand to provide investment opportunities worth USD 64-77 billion across 7 cities by 2020, says a joint report titled "Revitalising Indian Real Estate: A new era of growth and investment" by Cushman & Wakefield and Global Real Estate Institute (GRI).
The C&W-GRI report, which was released today, also estimates that the commercial office stock, which accounts for the majority at around 70 percent of the total REIT eligible stock will have value of around USD 44-53 billion.
In retail assets, the estimated value of REIT-eligible stock which includes completed and under-construction malls is estimated at USD 20-24 billion, with around 112 malls eligible for REITs.
The company expects REITs to emerge as an important driver of the commercial office and retail real estate sector investments in the medium to long-term.
In terms of residential sector outlook, the report states, "The residential sector, which has been impacted by negative sentiments and poor sales in the past couple of years, could take some more time to come out of the woods due to short-term impact of demonetisation that is likely to hurt some markets."
The report further stated that there is a huge gap between demand-supply but the government's initiative 'Housing for All-2022' is likely to bridge this gap.
Further, the total demand for urban housing is estimated at 4.2 million units during 2016-2020 across the top 8 cities.
The Indian commercial office sector, driven by the cities of Bengaluru, Delhi-NCR and Mumbai is likely to see increased momentum from cities such as Hyderabad and Pune by 2020.