New Delhi: The Indian real estate sector received $26.6 billion as foreign institutional investment during 2017-22 period, a three-fold jump from the previous six years, driven by inflows from USA and Canada with a share of 70 per cent, according to Colliers India.
Real estate consultant Colliers India Friday released a report “High on Investors’ Agenda” report that delves into the factors that make India a preferred choice for global investors.
Foreign investments in India have been on the rise over the last few years as the industry underwent an overhaul, with major structural, policy reforms inducing transparency and ease of business operations, the consultant noted.
As per the data, total institutional investments in real estate rose to $32.9 billion during 2017-22 period from $25.8 billion in the 2011-16 period.
Out of the total inflow, foreign institutional inflow rose to $26.6 billion from $8.2 billion.
However, the investment from domestic investors fell to $6.3 billion from $17.6 billion.
In foreign funding, the inflow from USA jumped to $11.1 billion from $3.7 billion, while investment from Canada rose sharply to $7.5 billion from $0.5 billion.
Inflow from Singapore also jumped nearly three-fold to $6 billion during 2017-22 from $2.1 billion in 2011-16 period.
“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, fuelling real estate demand in India,” said Sankey Prasad, Chairman & Managing Director at Colliers India.
“The strong economic and business fundamentals are enhancing institutional investors’ sentiments; forging strategic partnerships to expand their portfolios,” he said.
Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India, said India is on a long-term structural upcycle over the next few years and opportunities galore across spectrum and asset classes in real estate.
“Over the years, investment in Indian real estate has been getting broader and diversified with newer emerging concepts and themes. India’s attractiveness from manufacturers, occupiers, and investor’s perspective in the Asian market is on the consistent upswing,” Gupta said.
Office sector saw the highest investments during 2017-22, accounting for about 45 per cent of the total foreign inflows.
Foreign investments in industrial assets also have been on the rise and constituted 87 per cent of the total investments received in industrial and warehousing during 2017-22 period.
PTI