Global investment in realty sector to reach $45 trillion by 2020
Mumbai: Driven by rapid urbanisation and demographic changes, especially
in emerging markets, global investment in the real estate sector is
likely to increase 55 percent to USD 45.3 trillion by 2020 from USD 29
trillion in 2012, according to PwC.
PwC in a report 'Real Estate
2020: Building the Future' said that the investment in developing
Asia-Pacific countries, which includes India, is likely to rise by 140
percent to USD 10.2 trillion by 2020 from USD 4.3 trillion in 2012.
"Rapid
urbanisation and demographic changes, especially within emerging
markets, will lead to substantial growth in the real estate investment
industry over the next six years," PwC Executive Director (Capital
Markets) Shashank Jain said.
The expansion will be the greatest
in the emerging economies, where economic development will lead to
better tenant quality and, in some countries, clearer property rights,
and will play out across housing, commercial real estate and
infrastructure.
"Real estate is an integral part of the emerging
markets' growth phenomenon. In India, for example, real estate has
played a large part in driving economic growth. It's an exciting time
for the real estate sector, in an emerging country like India," he said.
According
to the report, the investment in Asia-Pacific countries is highest
compared with the US, Europe, Latin America, developed parts of Asia
Pacific and even Sub Saharan Africa and Middle East and North Africa.
Jain
observed that intense competition for prime real estate will force real
estate managers and investors to seek out new opportunities for yield.
"Yet
the growing and changing real estate world will present them with a far
wider range of risks, which they must be equipped to manage," he said.
Meanwhile,
the growing middle class and ageing populations in these emerging
economies are boosting the demand for newer types of real estate, Jain
said.
While office, industrial, retail and residential will
remain the main sectors, affordable housing, agriculture, health-care
and retirement accommodation will become significant sub sectors in
their own rights, he added.
Source : WEB
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