Foreign institutional inflow in real estate jumps over 3-fold

Indian real estate
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The Indian real estate sector received USD 26.6 billion as foreign institutional investment during 2017-22 period, a three-fold jump from the previous six years, driven by inflows from USA and Canada with a share of 70 per cent, according to Colliers India. Real estate consultant Colliers India has released a report “High on Investors’ Agenda” report that delves into the factors that make India a preferred choice for global investors.

Foreign investments in India have been on the rise over the last few years as the industry underwent an overhaul, with major structural, policy reforms inducing transparency and ease of business operations, the consultant noted. As per the data, total institutional investments in real estate rose to USD 32.9 billion during 2017-22 period from USD 25.8 billion in the 2011-16 period.

Out of the total inflow, foreign institutional inflow rose to USD 26.6 billion from USD 8.2 billion.

However, the investment from domestic investors fell to USD 6.3 billion from USD 17.6 billion.

In foreign funding, the inflow from USA jumped to USD 11.1 billion from USD 3.7 billion, while investment from Canada rose sharply to USD 7.5 billion from USD 0.5 billion. Inflow from Singapore also jumped nearly three-fold to USD 6 billion during 2017-22 from USD 2.1 billion in 2011-16 period.

“India’s favourable demographic indicators, deep digital talent pool, developmental government policies, infrastructure advancements and competitive costs have made it one of the top choices for global enterprises, fuelling real estate demand in India,” said Sankey Prasad, Chairman & Managing Director at Colliers India. “The strong economic and business fundamentals are enhancing institutional investors’ sentiments; forging strategic partnerships to expand their portfolios,” he said.

India is on a long-term structural upcycle over the next few years and opportunities galore across spectrum and asset classes in real estate. Over the years, investment in Indian real estate has been getting broader and diversified with newer emerging concepts and themes. India’s attractiveness from manufacturers, occupiers, and investor’s perspective in the Asian market is on the consistent upswing. Office sector saw the highest investments during 2017-22, accounting for about 45 per cent of the total foreign inflows. Foreign investments in industrial assets also have been on the rise and constituted 87 per cent of the total investments received in industrial and warehousing during 2017-22 period.

(Input from PTI)

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IE&M Team
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