India's urban shift creates major opportunity in institutional housing: Brookfield outlook

Brookfield notes that while housing is a global theme, the scale and trajectory of India's urban transition make it particularly distinctive.

It noted, "Moving to the Asia-Pacific region, institutional rental housing is in the early stages across many countries. India stands out, with significant population growth and the projected migration of 350 million people to cities by 2050, one of the largest urban shifts in history."

This demographic transformation is reshaping demand across the housing spectrum, particularly in rental housing, as cities expand faster than traditional housing supply models can adapt.

Brookfield highlights that the opportunity is not merely about volume, but about quality and formalisation of supply. As the report states, "As India's working and middle class continues to grow and urbanise, there is a deep opportunity to provide institutional-quality rental housing in a country where roughly 70 per cent of rental housing remains informally managed."

The dominance of informal rental arrangements underscores the scale of structural inefficiency in India's housing market.

Brookfield sees this fragmentation as a significant entry point for institutional capital capable of developing and operating professionally managed housing platforms at scale. The report notes that such conditions create compelling opportunities to acquire, create and expand platforms, and institutionalise fragmented market segments across the housing spectrum.

The outlook situates India's housing opportunity within a broader global recovery in real estate. Brookfield observes that financing markets are normalising, with renewed liquidity enabling price discovery and reactivating deal flow, creating a supportive backdrop for long-term investments. Housing is identified as one of the priority sectors positioned to benefit from this cycle, alongside logistics, data centres and hospitality.

Importantly, the report emphasises that success in housing is increasingly linked to operational capability rather than financial leverage alone. It states that "success in real estate investing will depend on selectivity and getting results from operational value creation as the asset class recovers." This is particularly relevant in India, where managing scale, tenant experience and regulatory complexity requires hands-on operating expertise.

India's housing demand is also being shaped by sustained urban employment growth and the expansion of the middle class, reinforcing rental housing as a durable theme rather than a cyclical one.

As India undergoes one of the largest urban migrations globally, Brookfield's outlook positions institutional housing as a critical component of the country's urban infrastructure. With informal supply still dominant and urban demand accelerating, the report suggests that India offers a rare opportunity to build scaled, professionally managed housing platforms aligned with long-term demographic fundamentals. (ANI)