Indian real-estate witnesses record investment worth $6 bn in 2019
01 Jun 2020
In 2019, the Indian real-estate industry recorded a 27 per cent increase in investment with approximate fund inflow of $6 billion across all key categories, reveal findings from CBRE South Asia. The findings further state that the investment activities were dominated by the ‘Office Sector’ and ‘Development Sites/Land’, with each commanding around 40 per cent of inflow of funds. This was followed by 11 per cent investment in hotels. The investment in ‘Development Sites/Lands’ in 2019 saw a 5 per cent increase compared to 2018. The ‘Hotels’ segment saw a 10 per cent increase in total investment against that of 2018.
Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE, says, “The healthy investment activity in the real-estate sector is testament to its performance and resilience. With the industry becoming more organised, transparent and profitable, it will continue to attract investments from global and domestic players. The steps initiated by the government to increase liquidity in the market have also worked well in increasing the confidence of investors.”
Gaurav Kumar and Nikhil Bhatia, Managing Directors and Co-Heads, Capital Markets, India, CBRE South Asia, further add, “India has emerged as a strong regional hub for institutional investors looking for opportunities in office, retail, warehousing and hospitality. This is underlined by significant foreign capital being deployed at the land stage.
We expect India to be better placed in the region on a relative basis owing to the robust handling of the COVID-19 situation by the government.”
The sector received a total investment of $4.8 billion in 2018 in comparison. City-wise, investment activities were led by Mumbai, the NCR, Bengaluru and Hyderabad.
Investment activity in all key segments was led mostly by foreign players, who contributed to the tune of 65 per cent. Total investment made by domestic players in various real-estate projects amounted to 35 per cent.
Related Stories