According to a report from Colliers, the amount of money from outside the country that went into real estate went up three times in the last five years. It came out with a report called “Foreign investments in Indian real estate turn a corner” with the help of Ficci. Over the last five years, global investors have become more interested in investing in Indian real estate because of regulatory changes made in 2016.
There was less transparency in the Indian real estate market, so foreign investors who had previously stayed away because they didn’t trust the market started investing more in Indian real estate in 2017. The foreign investments in Indian real estate have risen from 37% to 82% over the last five years.
An expert said, “We are seeing a rise in global capital inflows into India across all asset types, with office and industrial assets still the most popular.”
Investors will still work with developers who have a lot of experience in their fields to build and buy long-term, stable assets. With home sales going well across all markets in India and developers having a lot of room to grow, more structured capital is likely to come into the industry.
With 43 per cent of all the money that came from outside during 2017-21, the office sector was in the lead with the most money. The mixed-use sector came in second with 18 per cent. Following regulatory changes in 2016, the office sector saw a significant rise in foreign investment. Increased transparency, strong demand for Grade A office space, and exit options like REITs helped. From 2017 to 2021, the amount of money from outside investors in the office sector has always been at least $2 billion.
The industrial and logistics sector investments are in third place, ahead of the residential sector. Foreign investors were still wary of the residential sector after the NBFC crisis and slow residential sales. The share of residential assets in total foreign investments has dropped from 37% to 11% over the last five years. This is down from 37% in the previous five years.
“Demand for alternative assets like life science labs, data centres, and flex spaces has risen during the pandemic because investors are looking for new ways to make money and grow during this time. Data centres took in the most money from outside investors during the last five years. Investors will start looking for new ways to make money because there aren’t any income-producing data centres in important places, and there’s a chance for REITs in the future. In the last five years, global data centre operators, businesses, and investors have made capital commitments worth $13.5 billion to build data centres in India. This money comes from companies and investors worldwide. “It says so, an expert.
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