Indian real estate has attracted USD 62.8 billion (roughly Rs 4.81 lakh crore) of institutional investment since 2006, pushed by sequence of reforms within the sector, in response to property marketing consultant JLL India.
“The sequence of reforms that began in 2014 led to elevated capital flows through the years. Out of the overall Institutional investment of USD 62.8 billion from 2006 to March 2022, 58 per cent was acquired from 2015 onwards,” the marketing consultant mentioned in an announcement.
The key reforms just like the introduction of REITs in 2014, the Real Estate (Regulation and Development) Act (RERA) in 2016, the Benami Transactions (Prohibition) Act, GST, and the progressive leisure of international direct investment (FDI) norms through the years led to improved transparency, accountability, skilled administration, and growth of markets for smoother entry and exit of capital.
The optimistic impression of the reforms resulted in investments to the tune of USD 36.7 billion flowing into Indian real estate from 2015 to Q1 of 2022 calendar yr, it mentioned.
“Deal move at present seems very wholesome, with USD 943 million transacted in Q1 and with a number of giant offers within the pipeline we count on 2022 investment volumes to be at par with 2018 and 2019 (pre covid) ranges,” mentioned Lata Pillai, Managing Director and Head, Capital Markets, India, JLL.
Data centre and warehousing would stay sectors to be careful for as many arms chasing few alternatives will result in aggressive pricing and compressing cap charges, she added.
“The lifting of restrictions led to a pick-up in investment momentum throughout Q1 2022. This quarter noticed a 41 per cent bounce in institutional investments over This autumn 2021,” Pillai mentioned.
While home capital chased offers within the residential sector, international traders have been largely seen specializing in industrial property, she mentioned.
“Healthy leasing momentum has introduced back-office demand with traders getting into JVs/ growth partnerships. Retail additionally continued to see good traction with some opportunistic offers out there,” Pillai mentioned.
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