Over the years, investing in Indian real estate has become wider and more diverse with new emerging concepts and disciplines.
Foreign investment in India has increased in the last few years, as the industry has undergone major structural, policy reforms with transparency and ease of doing business operations.
India received cumulative foreign institutional investment (FII) of $26.6 billion in real estate over the past six years between 2017 and 2022, more than three times the previous six-year period. According to a Colliers report, there has been an increase in foreign investment in India in the last few years due to major structural, policy reforms in the industry leading to transparency and ease of business operations.
The report titled ‘India – High on Investors’ Agenda’ looks at the factors that make India a preferred choice for global investors and how it has outperformed other emerging economies. It also tracks the recovery and growth of the real estate market.
Sankey Prasad, Chairman and Managing Director, Colliers India, said, “India’s favorable 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 , thereby increasing the demand for real estate in India.”
He added that strong economic and business fundamentals are boosting institutional investor sentiment; Forging strategic partnerships to expand our portfolio. The office sector witnessed the highest investment during 2017-22, accounting for about 45 per cent of total foreign inflows. While investors remain happy with office properties, there is a growing interest in alternative properties.
“Over the past few years, global investors have viewed Indian real estate favorably given the affordability, positive economic outlook and growth prospects of the sector relative to its global peers. According to the report, foreign investment accounted for 81 per cent of the total investment in real estate during 2017-22.
It added that the country’s investor-friendly FDI policies, increased transparency in deal structure and higher investment limit through the direct route have encouraged global investors to invest in India’s real estate sector. Institutional investment in real estate continued to be upbeat in the first quarter of 2023, with a 37 per cent increase to $1.7 billion, led by the office sector.
Piyush Gupta, Managing Director (Capital Markets & Investment Services), Colliers India, said, “India is on a long-term structural uplift over the next few years and opportunities abound in real estate across the spectrum and asset classes. Over the years, Indian real Estate investment is becoming wider and more diverse with new emerging concepts and disciplines. India’s attractiveness from the perspective of manufacturers, traders and investors in the Asian market continues to grow.”
