Economy: REcover | Sharp rebound in GDP anticipated; economic indicators likely to start looking up
With the pandemic contained locally and access to vaccination secured, brighter prospects are expected for the Indian economy towards the latter half of 2021. Nonetheless, this is likely to be a slow and uneven recovery, as the global COVID-19 situation remains volatile.
Office: REcalibrate | Physical offices to stay; portfolio optimization and hybrid working anticipated to be dominant themes
The underlying strength of the office market is attributed to the diversified occupier profile and India’s position as an outsourcing destination. We will see an improvement in occupier sentiments and demand for office space, coupled with an investment grade supply pipeline.
Retail: REgain | Retail formats and configurations to realign; tech and e-commerce to drive change
Store expansions and openings are expected to go ahead as retailers readapt to the new retail environment post COVID-19. Recovery of the retail market is expected to be long drawn, given the risks and uncertainties that still linger, though it will be mitigated by the moderate level of upcoming supply.
Residential: REvival | Demand revival with strong end-user interest; government impetus and incentives by developers to ensure buoyancy
Emboldened by 2020’s sales performance, developers are likely to capitalise on this sales momentum to clear their remaining project inventory in the coming year. Buying sentiment is expected to remain strong and help support demand for upcoming new launches though underlying risks still remain.
Industrial & Logistics: REsilience | Sharp rebound in demand anticipated; focus on strengthening supply chain infrastructure!
Logistics has remained a resilient asset class amid the pandemic, despite supply chain disruptions. We expect a stronger turnaround in this sector in 2021, with demand mostly led by e-commerce and 3PL players. Greater investments in supply chain infrastructure and investment grade supply expected.
Capital Markets: REbalance | Investment opportunities to abound; core, core-plus assets to hold the key
CBRE believes that investment sales volume in 2021 is likely to remain strong. This will be led by office, land, industrial and residential. On the back of improved sentiments and consumer confidence, there could also be a renewed interest in retail and hospitality assets, as investors would be on the lookout for opportunistic deals.
Alternative Sectors: RElevant | Cold storage and data centers to remain lucrative investment classes; student accommodation and flexible spaces to also gain steam
The year 2020 witnessed an amplified interest in alternative asset classes such as flexible workspaces, data centers and cold storage units. We expect this interest to continue into 2021 as well.