Report : India going to become fourth in infrastructure development by 2030

India would become fourth largest infrastructure projects market in the world by 2025 as real estate and construction sector is continuously evolving in the country, according to a RICS report.
"Recent reports commissioned by RICS found affordable housing was an acute problem in some BRICS nations including Brazil, China and India, exacerbated by growing urban populations," Royal Institution of Chartered Surveyors (RICS) said in its report.

At present, India is at sixth position with 5.3 per cent share in the global infrastructure market and by 2025 its share will go up to 9.8 per cent and it will be at fourth position, the report added.

"Real estate and construction sector in India is continuously evolving at a rapid pace. All stakeholders of this profession need to come together to attract high quality talent in this sector," RICS Global MD - Emerging Business Sachin Sandhir said.

More than 50 per cent of urban growth will come from just seven countries: India, China, Nigeria, Indonesia, the USA, Pakistan and the Democratic Republic of Congo, it said adding that China and India will contribute more than one-third of the total growth.

It also added that Indian government has announced plans to not just create REITs but also investment infrastructure trusts (InvITs).

Therefore, investors, and the construction and real estate sectors more broadly, need to monitor changing policy landscapes to ensure they are ready to take advantage of new opportunities, the report said.

RICS is a global body for setting standards in property sector.

Chennai Realty get a Push for development in infra structure Growth: JLL

Chennai: Development of infrastructure projects like Metro rail and the economic upturn will have a positive impact on the residential, office and commercial real estate segments here, a senior Jones Lang Lasalle (JLL) official has said.

Real estate investment trusts (REITs) in India are expected to take off in a big manner only three or four years after they start operations, said Shankar Arumugham, national director-strategic consulting at JLL.

"Chennai is coming out of the unsold residential stock problem. The development of infrastructure like Metro-rail system will have a positive impact on the residential properties located along the rail route," he said.

According to him, nearly 50 per cent of the residential real estate projects are coming up in South Chennai whereas the contribution of North Chennai is minimal.

However, the absorption rate of properties is much better in north Chennai as compared to south Chennai, Mr Arumugham said.

He said the residential capital and rental values are set to go up.

Speaking of the commercial space, he said the demand is set to go up in the next few quarters in the city from the information technology (IT) sector and in special economic zones (SEZ).

On REIT, he said broadly the set-up is similar to a mutual fund.

According to Mr Arumugham, REITs and the proposed real estate law are set to bring in more professionalism into the sector.

He said REITs would take some years to pick up as investors would first have to understand the system and there will be some initial problems that needs sorting out.

Arumugham said even in overseas, REITs took off only after couple of years after their introduction.