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Environmental sustainability has taken on increased global significance in recent years, with an increased focus on climate resilience and net-zero carbon (NZC) strategies. This is particularly relevant to the real estate industry as it seeks to future-proof real estate portfolios using effective climate risk management strategies. Environmental sustainability issues are equally applicable in both the developed and emerging real estate markets.

This report focuses on net-zero carbon strategies for real estate in India. We conducted interviews with leading players in India’s real estate industry. This enabled in-depth understanding and insight into the critical issues for achieving net-zero carbon in India and identified the most effective pathways forward for real estate. Many of the issues concerning India are equally relevant to other emerging markets in Asia, so this report should also appeal to a wider audience.

This study evaluates key barriers, challenges, and opportunities in the adoption of NZC and recommends strategies for the low-carbon transformation of India’s real estate sector.

The rise of mixed-use development platforms has prompted hospitality brands to diversify their offerings, expanding into residential spaces such as resort villas and luxury apartments to cater to a broader audience. This note provides an overview of the concept of Branded Residences and explores how the Indian market is adapting and evolving with this trend. As the hospitality sector in India is still relatively new to Branded Residences, this note highlights key features, incentives, and regulatory considerations, serving as a guide for both the hospitality and real estate sectors to make informed decisions.

In today’s highly competitive Asia Pacific retail market, retailers must continually create innovative products, services and experiences to differentiate themselves from their peers. With brick-and-mortar retail remaining an integral part of consumers’ shopping journey, retail real estate continues to play a major role in the creation and delivery of innovative brand experience.

Based on its market-leading research, CBRE has identified 12 attributes that nurture innovation in retail real estate across four pillars: 1) Market size; 2) Consumer profile; 3) Retailer growth strategies; 4) Spaces that tell a story.

CBRE has used these attributes to create the Asia Pacific Retail Innovation Index, which analyses the innovation performance of major cities in Asia Pacific and identifies their strengths, weaknesses and relative appeal to retailers.

The report also provides recommendations to retailers and landlords on how to spark innovation and creativity in their portfolios to address the retail industry’s evolving needs and expectations.

After a challenging period of higher borrowing costs that strained real assets, central banks are now transitioning toward rate reductions, creating opportunities across sectors such as commercial properties, logistics, retail, and hospitality.

In our latest issue of APREA TrendWatch, we explore the revival of real estate investments amid easing monetary policies in the Asia Pacific.

Around the world, main streets serve as cultural and economic powerhouses that shape the identities of the cities they anchor. In its 34th year, Cushman & Wakefield’s Main Streets Across the World report confirms the value of main streets worldwide, key economic and social trends shaping their value, and the role they play in crucial global and local business decisions.

A New Era of Main Streets

Despite economic challenges, main streets have shown remarkable resilience as headline rents globally finally surpass prepandemic levels. Retailers continue to target prime locations for their strategic importance and potential for customer attraction, demonstrating their flexibility and strength by adapting to shifting economic conditions and consumer demands. Challenges like rising interest rates and inflation have dampened consumer confidence—yet forecast further rate cuts bring a hopeful outlook for recovery. Retailers are navigating cost pressure challenges while adapting to shifting consumer loyalty trends that demand an omnichannel customer journey, making main street locations increasingly critical arenas for longterm business growth.

Globally and especially in Singapore, the race to Net Zero has long begun. Like running any race, the motivation and plan must be clear. This paper lays out the urgency and steps to win this race for both commercial real estate owners and occupiers.

Net Zero buildings enhance resilience to energy supply disruptions and reduce dependence on fossil fuels. Although there may be initial costs, long-term savings through reduced energy expenses and increased property value are significant benefits. Net Zero buildings also offer a healthier and more productive environment for tenants, leading to higher occupancy rates and rents.

Finally, a couple of case studies demonstrate the potential savings for typical landlords and occupiers in the commercial space from optimising energy use (without additional capital expenditures) through simulation-based solutions; adopting the smart scheduling of energy use can lead to substantial cost and emission reductions.

The Indian ports sector is witnessing increased private sector participation, particularly by way of Public-Private Partnerships (“PPP”). The government has facilitated private sector participation by adopting investor friendly PPP models and streamlining tender processes and concession agreements for major ports. Due to multiple regulatory authorities and differing practices of port authorities, mergers and acquisitions in the ports sector in India are associated with unique considerations that potential acquirers should bear in mind. This note discusses the key regulatory and contractual considerations relevant to mergers and acquisitions in the ports sector in India.

Hisashi Ishiwata

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Aakanksha Joshi

Partner,
S&R Associates

KEISUKE SATO

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Ameesha Tripathi

Associate,
S&R Associates

MASATOSHI MATSUO

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Apurv Sharma

Counsel
S&R Associates

KENJI UTSUMI

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Rajat Sethi

Partner
S&R Associates

The climate impact of the real estate sector cannot be understated, with buildings contributing nearly 40% of global carbon emissions. Asia, home to over half of the world’s urban population, plays a critical role in this equation, with the region’s emissions projected to increase as urbanization and development accelerate. 

With approximately 70 billion square meters of real estate expected to be developed in Asia over the next two decades, the region has the potential to not only reduce emissions but to set new standards in sustainable urban planning and construction.

Key Decarbonization Strategies for Asia:

  1. Limiting Urban Sprawl: Urban expansion in Asia has often led to low-density developments, resulting in higher emissions due to increased infrastructure demands. Cities can mitigate these impacts by focusing on high-density, mixed-use developments, creating efficient urban spaces that minimize transportation needs and reduce the overall carbon footprint.
  2. Sustainable Construction Practices: The materials and processes used in construction have a significant carbon impact. By adopting innovative materials and techniques, such as using greener concrete mixes, and integrating supplementary cementitious materials, developers can dramatically cut emissions. For example, certain concrete mixes can reduce carbon emissions by up to 40% compared to traditional materials.
  3. Carbon Capture and Storage: Emerging carbon capture technologies offer promising solutions to reduce emissions from the manufacturing of construction materials. Though still in early stages, these technologies have the potential to significantly cut emissions if adopted at scale.
  4. Advanced Data and AI Solutions: Accurate data tracking is essential for effective emissions management. Technologies that integrate data from utility bills, smart meters, and Building Management Systems enable real-time tracking and smarter energy management, reducing emissions tied to building operations.

A Path Forward for a Sustainable Asia

The decarbonization of Asia’s built environment represents both a challenge and a $47 trillion economic opportunity, driven by the need to align with global climate goals while catering to the unique demands of the region. Achieving this requires a targeted approach, one that equips developers, investors, and policymakers with strategies that balance sustainability with Asia’s rapid growth.

 To dive deeper into these strategies, download the whitepaper “From Concrete to Carbon Neutral: Decarbonizing Asia’s Built Environment”.

Annu Taljera

Founder, CEO
Accacia

October was a difficult month for Asian Real Estate (RE) securities and REITs. We mentioned in last month’s update that we expected volatility given the upcoming elections in both the US and Japan, along with recent economic data that had reduced expectations of more aggressive Fed interest rate cuts. Expectations of a Trump victory were clearly anticipated in equity, fixed income, currency, and crypto markets. The Asian RE universe fell by more than 7% in USD, with much of the weakness coming from exchange rates. Back in 2016, Asian RE Securities and REITs suffered after Trump’s surprise victory, initially falling by 6% in the weeks after the election and significantly trailing the SPX, which rose over that same period. However, the sector rallied by nearly 10% from the start of 2017 until mid-year when Trump officially took office and subsequently rose by 15.5% in 2017. Given the outcome was less of a surprise this time around, we believe the market had somewhat priced in a Trump victory already.

While the risks of accelerating inflation due to pro-cyclical policies are a concern, there are other forces that will help contain inflation, such as rising productivity; and while tariffs may spike US inflation initially, they are likely to hurt the economy and some US companies due to higher input costs and potential retaliation from trading partners. China is cautious in unleashing additional stimuli until Trump takes office, which has led to additional disappointment in the region. While it is hard to estimate the full potential impact on rates and Asian growth from Trump’s anticipated policies, the sector performance in October was worse than in the months after Trump’s 2016 surprise victory. Therefore, we are hopeful that we will see some bottoming soon given the sharp decline in stocks and forecasted recovery in DPUs going into 2025 and 2026.

India’s education sector, forecast to reach a market size of USD 313 billion by FY2029-30, is experiencing rapid growth, driven by a robust economy, burgeoning population and urbanisation, rising per capita incomes, and conducive government policies.

The country’s comprehensive education system is characterised by its scale and breadth, with 1.49 million K-12 schools educating approximately 265 million students. Additionally, its higher education sector is among the largest globally, encompassing nearly 59,000 institutions and enrolling an estimated 43 million students.

As a cornerstone of economic development, India’s education sector has garnered substantial interest from both public and private stakeholders. The government’s commitment to education, as evidenced by the significant budgetary allocation over the years, is expected to foster further growth. Moreover, the sector has witnessed significant foreign direct investment (FDI) equity inflows of USD 9.5 billion since 2000.

While these developments are encouraging, achieving the ambitious objectives outlined in the National Education Policy 2020 necessitates a further strategic increase in budgetary expenditure – a gradual increase in education spending from 2.7% of the country’s GDP in FY2023-24 to the targeted 6% is imperative to ensure the sector’s sustained progress.

Notably, India’s education sector prioritises social good over profit generation, involving a combination of ‘not-for-profit’ activities and ‘for-profit’ administration. Private entities play a significant role by contributing through various business models, encompassing infrastructure and facilities development, strategic investments for expansion, or the provision of management and administrative services.

As the sector grows, there is a corresponding need to strengthen educational infrastructure across the country, presenting significant opportunities for real estate developers and investors.

CBRE India conducted a real estate opportunity assessment to evaluate the additional space requirement of K-12 and higher education institutions that can accommodate the projected growth in student enrolment in India. Our real estate opportunity assessment for India’s education sector indicates an estimated 4+ billion sq. ft. of additional space requirement by 2034-35.