MUMBAI: Mumbai 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, according to Real Estate 2020: Building the future, a new report from PwC. At the same time as the industry's opportunities grow, so too will assets invested into the sector, it said.
The report 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 expand again by a similar proportion by 2030. The expansion will be greatest in 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.
The report also finds that private capital will play a critical role in funding the growing and changing need for real estate and its supporting infrastructure.
"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," it said.
PwC predicted that total investable real estate in developing Asia-Pacific countries, which includes India, will rise by 140% to $10.2 trillion by 2020, from a 2012 total of $4.3 trillion. The 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.