What do foreign investors in real estate look for?

02 Jan 2019 Editorial Team

Over the past few years, 100 per cent FDI has been permitted in construction development, with the intention of attracting foreign investment in Indian realty, says Shobhit Agarwal, Managing Director & CEO, Anarock Capital.
So, have recent reforms helped increase the interest of overseas funds in India?

“Over the past five years, overseas pension funds, sovereign wealth funds and real-estate funds have invested ~$10 billion in Indian realty, primarily towards buying out ready assets and financing for upcoming assets,” says Prateek Jhawar, Director and Head, Infrastructure & Real Assets, Avendus Capital. “In 2017, these funds emerged as the biggest investors accounting for ~70 per cent ($2.2 billion) of real-estate investments in India. Most funds are entering India at a time when developers are struggling to stay afloat and equity funding is far from frequent. Their investments in development tend to take the form of structured equity/debt in the early stages of the project for development; whereas the buyout of income generating assets provides a much-needed exit channel for liquidity-seeking developers.”

“With the government undertaking reforms in areas such as RERA and ease in InvIT/ REIT regulations, global funds seem to be gaining more confidence in Indian real estate and are opting for JV or platform deals,” Jhawar continues. “They see potential to grow over a 7-10 year horizon, especially with good developers that generate good returns over the real-estate cycle. Players such as GIC, Brookfield, CDPQ, APG, Qatar Holdings, etc, have already entered the Indian real-estate market with plans for long-term investments. Qatar Holdings has recently pumped $250 million in Arthaveda Fund Management to invest in low and middle-income residential projects.”

In future, Jhawar expects real-estate funds to play a key role in financing projects as the average size of projects is increasing and the NBFC sector is facing a liquidity crunch.

“Foreign investors are definitely interested in investing in real-estate projects in India,” says Karan Bolaria, CEO, Godrej Fund Management. “They look for projects delivering returns of 15-18 per cent to cover the currency risk, development risk and any country-specific risks along with their own returns thresholds.”

Over the past few years, 100 per cent FDI has been permitted in construction development, with the intention of attracting foreign investment in Indian realty, says Shobhit Agarwal, Managing Director & CEO, Anarock Capital. So, have recent reforms helped increase the interest of overseas funds in India? “Over the past five years, overseas pension funds, sovereign wealth funds and real-estate funds have invested ~$10 billion in Indian realty, primarily towards buying out ready assets and financing for upcoming assets,” says Prateek Jhawar, Director and Head, Infrastructure & Real Assets, Avendus Capital. “In 2017, these funds emerged as the biggest investors accounting for ~70 per cent ($2.2 billion) of real-estate investments in India. Most funds are entering India at a time when developers are struggling to stay afloat and equity funding is far from frequent. Their investments in development tend to take the form of structured equity/debt in the early stages of the project for development; whereas the buyout of income generating assets provides a much-needed exit channel for liquidity-seeking developers.” “With the government undertaking reforms in areas such as RERA and ease in InvIT/ REIT regulations, global funds seem to be gaining more confidence in Indian real estate and are opting for JV or platform deals,” Jhawar continues. “They see potential to grow over a 7-10 year horizon, especially with good developers that generate good returns over the real-estate cycle. Players such as GIC, Brookfield, CDPQ, APG, Qatar Holdings, etc, have already entered the Indian real-estate market with plans for long-term investments. Qatar Holdings has recently pumped $250 million in Arthaveda Fund Management to invest in low and middle-income residential projects.” In future, Jhawar expects real-estate funds to play a key role in financing projects as the average size of projects is increasing and the NBFC sector is facing a liquidity crunch. “Foreign investors are definitely interested in investing in real-estate projects in India,” says Karan Bolaria, CEO, Godrej Fund Management. “They look for projects delivering returns of 15-18 per cent to cover the currency risk, development risk and any country-specific risks along with their own returns thresholds.”

Infrastructure Transport

11 May 2026

Shivraj Chouhan Launches PMGSY IV and Announces Package for Madhya Pradesh

Union Minister Shivraj Singh Chouhan launched the Pradhan Mantri Gram Sadak Yojana (PMGSY) IV at Bhairunda in Sehore district during the 25 year celebrations and announced a development package for Madhya Pradesh. The programme was organised by the Union Ministry of Rural Development and attended by Chief Minister Dr Mohan Yadav, ministers of state, state ministers, legislators and senior officials from the centre and the state. The minister said the central government under the Prime Minister is committed to strengthening rural livelihoods through improved connectivity, housing and women's in..

Infrastructure Urban

11 May 2026

DMR Engineering Reports FY 25-26 Financial Results

DMR Engineering reported its half year results for the financial year ended 31 March 2026 and published full year figures on a standalone basis. Standalone revenue from operations decreased by 2.01 per cent year-over-year to Rs 102.58 million (mn), while profit after tax declined by 43.94 per cent to nine point five six mn, leaving a profit after tax margin of nine point zero five per cent. Earnings per share stood at Rs zero point nine two, a fall of 44.71 per cent year-over-year. The company attributed part of the decline to one-off provisioning for bad debts and additional financing charges..

Infrastructure Urban

11 May 2026

Atlanta Electricals Posts Strong FY26 Growth And Debt Free Finish

Atlanta Electricals reported audited consolidated results for the quarter and year ended 31 March 2026. The company recorded significant year-on-year revenue growth driven by capacity ramp-up at new facilities and higher utilisation at legacy plants. The announcement summarised operating improvements and strategic milestones achieved during the year. For Q4 the company reported revenue of Rs 7.48 bn and for FY26 revenue of Rs 18.52 bn, representing robust growth versus the prior year. EBITDA in Q4 was Rs. 1.49 bn and Rs. 3.44 bn for the full year, with margins expanding to 20 per cent in the q..