India's real estate sector has witnessed a significant surge in foreign institutional inflows, reaching USD 26.6 billion between 2017 and 2022, according to a report by Colliers, a Nasdaq-listed investment management company. This figure represents a three-fold increase compared to the preceding six-year period, highlighting the growing interest of global investors in the Indian real estate market.
Colliers' report attributes the rise in foreign investments to the industry's comprehensive overhaul, including major structural and policy reforms that have enhanced transparency and facilitated ease of business operations. The report, titled 'India - High on Investors' Agenda,' sheds light on the factors that have positioned India as a preferred choice for global investors and distinguished it from other emerging economies.
According to the report, foreign investments accounted for a significant 81 percent share of the total investments in the Indian real estate market during the 2017-2022 period. This underscores the confidence of global investors in India's real estate sector. Colliers emphasizes that India's investor-friendly FDI policies, improved transparency in deal structures, and higher investment limits through the direct route have been instrumental in attracting global investors to the country's real estate sector.
The positive trend in institutional investments in Indian real estate extended into the first quarter of 2023, with a year-on-year increase of 37 percent, amounting to USD 1.7 billion. The office sector led this growth.
An Investment firm's entity highlights several factors that make India an appealing investment destination, such as favourable demographic indicators, a deep digital talent pool, developmental government policies, infrastructure advancements, and competitive costs. These factors have fueled the demand for real estate in India and strengthened institutional investors' sentiments, leading to strategic partnerships and portfolio expansions.
At the Asia Pacific level, India has emerged as a favoured investment destination due to its attractive pricing, better valuations, and higher yields on real estate assets. Major Indian cities, including Bengaluru and Mumbai, rank second and third, respectively, in terms of commercial yield on real estate assets across the region.
Overall, the significant increase in foreign institutional inflows into the Indian real estate sector reflects the growing confidence of global investors in India's market potential, driven by favourable policies, transparency, and strong economic fundamentals.
We use cookies to ensure you get the best experience on our website. Read more...
Copyright © 2024 HomesIndiaMagazine. All Rights Reserved.