CBRE India Releases 1st Report Of 2021: Real Estate Strategies Post Covid-19


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    • Office – The sector is moving towards a hybrid model of working, defined by workforce agility, tech adoption and wellness.
    • Industrial & Logistics (I&L) – A tech-enhanced, networked supply chain mechanism would become a buzzword in this sector.
    • Retail – The idea of shopping is changing, driven by the evolving role of the physical store and shift in consumer behavior
    • Residential – The sector is continuing on its path of becoming more buyer-centric, with mid-end and budget housing playing a dominant role.
    • Alternate segments – Flexible workspaces, data centers (DC) and cold storage (CS) facilities are increasingly becoming a focus area among stakeholders

    New Delhi, January 21, 2021 – CBRE South Asia Pvt. Ltd., India’s leading real estate (RE) consulting firm, recently announced its comprehensive findings through its research report titled ‘Indian Real Estate in 2021: Reboot | Reimagine | Regain’. The report gives an insight into how the changed times have posed a need for the Indian RE sector to recalibrate its operations in order to ensure sustained recovery, also providing a view of the way ahead.

    Mr. Anshuman Magazine, Chairman & CEO – CBRE, India, South East Asia, Middle East & Africa, said, “Our collective journey through the COVID-19 pandemic has been shaped by an understanding that business operations would never be the same.

    Mr. Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East & Africa, CBRE
    Mr. Anshuman Magazine, Chairman & CEO – India, South East Asia, Middle East & Africa, CBRE

    We look at 2021 as an opportunity to start afresh and make a shift from traditional to more transformational and agile methods. Along with integrating technology, a sustained policy impetus and accelerated investor interest would lead to sustained recovery of the RE sector in India. As we continue to learn to live with the virus, the year 2021 would require us to recalibrate the way we have operated so far.”

    Mr. Abhinav Joshi, Head of Research- CBRE, India, Middle East & North Africa, said, “We are currently witnessing a dramatic acceleration in three trends across most sectors: tech enhancement of spaces, increased flexibility of leasing or portfolios and heightened e-commerce penetration. While the impact of remote working is yet to be gauged in India, the interplay between retail and logistics has taken on a new dynamic, which would support the rise of urban logistics. And while residential has chosen its path of recovery in the form of mid-end and budget housing, the focus on alternative segments (flexible workspaces, DCs and CS facilities) implies that their inclusion into mainstream RE is inevitable.”

    What recovery would look like for different RE sectors in India:


    • Advances in technology, a more mobile workforce and uncertain economic growth are reshaping the business environment and transforming the occupier approach to RE decision-making.
    • Post COVID-19, the implementation of technologies such as virtual reality and artificial intelligence is likely to have a long-term and far-reaching impact on the office sector in India.
    • Occupiers would continue to deploy a hybrid model of Work from Anywhere (WFA) which would result in having a more diversified workforce network and ensure business continuity planning (BCP).


    • A reconfigured supply chain ecosystem is expected to help businesses withstand, and even thrive on, disruption.
    • An increase in the quantum of I&L investment post COVID-19 is expected, with global players primarily inclined towards greenfield projects and select brownfield acquisitions.
    • Upcoming initiatives such as the Draft National E-commerce, Logistics and Industrial Policies, which once approved, are expected to further streamline the sector, thereby boosting logistics demand.


    • Retailers of the future are likely to curate immersive experiences for their customers so that they can test or try products in the context of their actual usage.
    • The e-commerce sector in India is expected to enable an innovative and sustainable shopping experience for customers.
    • Post COVID-19, stores are also anticipated to serve as platforms to engage consumers and amplify their brand.


    • While a gradual improvement in sales across all segments is expected, mid-income (INR 45 lakh to INR 1 crore) and budget (less then INR 45 lakh) categories are likely to be the key focus areas among homebuyers and perform relatively better in 2021.
    • The use of tech is likely to continue boosting sales, as more developers are turning towards sophisticated Prop-Tech tools to enable decision-making.
    • Construction techniques are undergoing massive tech enhancement, which is likely to accelerate timelines, improve quality and build resilience for the sector.

    Alternate Segments

    • Flexible Workplaces: Flexible workspaces would continue to be an integral part of real estate strategies going forward, especially considering that occupiers have been looking to optimize their portfolios which would involve integrating traditional, remote working and flexible office spaces.
    • DCs: Owing to the rise in usage of smart devices and increased data consumption, occupier demand for data storage is likely to increase in the coming quarters with the country’s DC capacity expected to cross 600 MW during 2020-21.
    • CS units: Increasing urbanization, demand from the healthcare / pharma industry and the emergence of organized retail food processing and servicing sectors have accelerated the requirement for an efficient CS infrastructure in India, thereby driving demand for the CS segment. CBRE expects the overall CS real estate stock to rise to 1,400-1,500 million sq. ft. by 2023.

    About CBRE Group, Inc.

    CBRE Group, Inc. (NYSE: CBRE), 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 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide.

    CBRE was the first International Property Consultancy to set up an office in India in 1994. Since then, the operations have grown to include more than 10,000 professionals across 10 offices with a presence in over 80 cities in India. As a leading international property consultancy, CBRE provides clients with a wide range of real estate solutions, including Strategic Consulting, Valuations/Appraisals, Capital Markets, Agency Services and Project Management. The guiding principle at CBRE is to provide strategic solutions that make real estate holdings more productive and economically efficient for its clients across all service lines.


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