India will have USD 64-77 billion worth commercial properties by 2020 in its major seven cities that can be listed as the Real Estate Investment Trusts (REITs), according to a report.
"It is estimated that by 2020, India will have REIT-eligible commercial office and retail, properties that stand to provide investment opportunities estimated at USD 64 billion to USD 77 billion across top seven cities of India," Cushman & Wakefield said in a statement.
This was stated in a joint report titled 'Revitalising Indian Real Estate: A new era of growth and investment' by Cushman & Wakefield and Global Real Estate Institute (GRI).
The commercial office stock, which accounts for the majority at about 70 per cent of the total value of REIT-eligible stock, is estimated to have total value of USD 44-USD 53 billion, the report said.
Across the top seven cities of India, ready commercial office stock that is eligible for REIT investments amounts to 277 million sq ft, accounting for less than half (44%) of total commercial office stock in India.
In addition to completed stock, about 68 million sq ft of additional REIT-eligible stock expected to be completed by 2020 across the seven cities.
In retail assets, the estimated value of REIT-eligible stock (completed and under-construction malls) is estimated at USD 20-24 billion, with roughly 112 (52 million sq ft) malls eligible for REITs.
About 78 per cent (41 million sq ft) of these malls are completed and operational while the remaining (11 million sq ft) are under construction and scheduled to be completed by 2018.