Investment in India’s real estate sector is likely to rise by 5 per cent to USD 6.5 billion (around Rs 46,000 crore) this year, driven mainly by huge demand for commercial office assets from IT firms, according to global property consultant Colliers. Last year, the real estate sector attracted an investment of USD 6.2 billion, up 8.7 per cent from 2018 as foreign investors bought many office properties. Foreign funds accounted for about 78 per cent of the total investments in 2019. According to Colliers, India’s real estate sector has recorded inflows of USD 56.6 billion (Rs 410,000 crore) since 2008. “During 2019, investments into the real estate sector touched USD 6.2 billion (Rs 43,780 crore).
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During 2020, Colliers projects investments inflows of USD 6.5 billion in the real estate sector,” it said in a report. The consultant expects investors to remain committed to commercial office assets over the next three years, with strong demand and outlook for further rental appreciation. “We project that the commercial office sector will account for about 40 per cent of the inflows in 2020,” Colliers said. Commercial office assets accounted for 46 per cent of the total inflows during 2019 at USD 2.8 billion (Rs 19,900 crore). Investors interest have risen because of plethora of reforms such as enforcement of the Real Estate Regulatory Authority, introduction of the Goods and Services Tax (GST), roll-out of the Insolvency and Bankruptcy Code and a relaxation of foreign direct investment norms, the consultant said.
Source: Financial Express
