Mumbai’s rapid urbanization to boost real estate industry
As per “Real Estate 2020: Building the future”, a new report from PwC Mumbai, the rapid urbanization and demographic changes, especially within emerging markets, will lead to substantial growth in the real estate investment industry over the next six years. It also said that with the growth of industry’s opportunities, the assets invested into the sector will also grow.
The report also predicts that the global stock of investable real estate will rise by more than 55% to around $45.3 trillion by 2020, from a 2012 total of $29.0 trillion and will keep expanding in a similar proportion till 2030. The expansion, the report says, will be greatest in emerging economies, where economic development will lead to better tenant quality and clearer property, in some countries rights. This trend, the report says, will play out across housing, commercial real estate and infrastructure.
The report also finds that private capital will be of immensely critical role in funding the growing and changing need for real estate and its supporting infrastructure.
The report said, “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.”
PwC also predicted that the total investable real estate in developing countries of the Asia-Pacific, including India, will rise by 140% to $10.2 trillion by 2020, from a 2012 total of $4.3 trillion. This increase in percentage terms is the highest when compared to other regions such as USA, Europe, Latin America, developed parts of Asia Pacific and even Sub Saharan Africa and Middle East & North Africa.
Source: The Times of India
Asia-Pacific, Commercial real estate, demographic changes, emerging markets, Europe, Housing, Infrastructure, investable real estate, Latin America, Middle East, Mumbai, North Africa, PwC, Real Estate 2020: Building the future, Sub Saharan Africa, the real estate investment industry, Urbanization, USA
