Indian real estate has witnessed a 40 per cent YoY increase in inflow since the beginning of 2017. A recent study has revealed that an investment of $3.1 billion has been made in the sector between January and end of June this year. Big global investors such as Blackstone, GIC and Goldman Sachs have also been making investments in Indian realty since the last few years.
With the global economy on a road to recovery, increasing employment prospects and rising rate of inflation in their home countries; foreign investors are expecting diminishing inflation adjusted returns. Investors therefore have more confidence in emerging markets where the assets are also cheaper.
According to a separate study, India has emerged as the most attractive market from an investment point of view and has observed a private equity inflow of Rs 16,008 crore at the end of June 2017 compared to Rs 15,601 crore in 2016. A comparison between debt and equity investments seen between 2014 and first half of 2017 stand at more than Rs 98,000 crore, much higher than the Rs 95,000 crore seen during an entire decade from 2003 to 2013.
Some of the factors responsible for the boost in both foreign and domestic investments include a stable government and an implementation of several reforms such as the GST and RERA. Real estate in particular has seen a robust in-flow of foreign investment due to falling capitalisation rates.
