Page 22 - Clean India Journal - Sept 2023 Digital Edition

REITs catalysing demand for mid-segment finest experience – to be provided
While REITs have been driven housing. Additionally, the share by a combination of high-order
healthcare and hospitality FM.
of HNIs and UHNIs households
by office demand, one can expect to in India will likely increase from
see more REITs being introduced 3% to 9%, trebling the demand for India’s decades-old primary
across other asset classes such as luxury housing. health centres and district hospitals
retail, logistics, hospitality etc. are in the midst of a rapid upgrade.
The office market is estimated to Scores of new, 700-1,000 bedded
provide an investment opportunity Healthcare super-specialty public hospitals
of $59-63 billion through the listing Both the public and private arms are being set up on a war footing,
of new REITs. With over 50% of of this recession-proof sector are outside of the traditional nuclei of
India’s Grade A office stock already in a phase of intensive growth. public healthcare.
considered REITworthy, this market Prompted by the experience of
can be expected to only grow. the pandemic, the government Data centres
Residential real estate is planning to introduce a credit Sample this: In just three years,
The current size of India’s real incentive programme worth ₹500 the size of this industry doubled
estate is estimated to be about $477 billion to boost the country’s in India. A push to incorporate
billion; by 2047, it is projected healthcare infrastructure. Firms digitisation in everything from
to expand to $5.8 trillion. Private can leverage the fund to expand smart cities and public health to
equity investments within this hospital capacity or medical payments and entertainment has
sector are projected to surge to supplies in smaller towns, with the jet-propelled data generation.
$54.3 billion by that point – a government acting as a guarantor. Anticipating this surfeit, many
CAGR of 9.5% spanning a quarter With this, one can expect to see states have announced data centre
century. 100-200 bed hospitals in Tier III policies to attract industry players;
What will drive this surge? An centres as well. not surprisingly, the existing 20
estimated 230 million housing units The combination of exotic million sq ft stock is expected to
double within just two years.
will be required over this period. hospitality and medical excellence
In the next few years, demand will offered by premium private According to the latest data, only
remain concentrated in affordable hospitals has caused patients from around 22% of the existing stock
housing. However, as the share across the world to gravitate to is LEED certified. At a time when
of lower-income households India. By 2026, the Indian medical occupiers as well as cloud operators
reduces from the existing 43% to a tourism market is expected to are aggressively chasing ESG
projected 9% by 2047, a significant reach a whopping $13.42 billion. targets, incorporating sustainable
share of the population will shift to Its high-net-worth customers will practices in energy-intensive data
upper-middle-income categories, settle for nothing less than the centers will become critical for FM.