India's real estate sector sees three-fold rise in foreign institutional investment
Real Estate

India's real estate sector sees three-fold rise in foreign institutional investment

During the six-year period from 2017 to 2022, India received cumulative foreign institutional inflows of USD26.6 Bn into real estate, a three-fold rise from the preceding six-year period. Foreign investments in India have been on the rise over the last few years as the industry underwent an overh...

During the six-year period from 2017 to 2022, India received cumulative foreign institutional inflows of USD26.6 Bn into real estate, a three-fold rise from the preceding six-year period. Foreign investments in India have been on the rise over the last few years as the industry underwent an overhaul, with major structural, and policy reforms inducing transparency and ease of business operations, according to Colliers’ ‘India- High on Investors’ Agenda’ report. “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, fueling real estate demand in India.  The strong economic & business fundamentals are enhancing institutional investors’ sentiments; forging strategic partnerships to expand their portfolios. The office sector saw the highest investments during 2017-22, accounting for about 45 per cent of the total foreign inflows. While investors remain buoyant on office assets, their interest in alternative assets is surging,” says Sankey Prasad, Chairman & Managing Director, Colliers India.Over the years, global investors have favourably looked at Indian real estate given the resiliency, positive economic outlook, and promising growth prospects of the sector relative to its global peers. According to the report, foreign investments accounted for a sizeable share of 81 per cent of the total investments in real estate during 2017-22. The country's investor-friendly FDI policies, increased transparency in deal structures, and higher investment limits through the direct route have encouraged global investors to invest in India's real estate sector. Institutional investments in real estate continue to remain upbeat in Q1 2023 as well, rising by 37 per cent YoY at USD1.7 Bn, led by the office sector.

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