India recorded a three-fold rise in foreign investment into real estate during the six-year period 2017 – 2022 of $26.6 Billion. Colliers’ India High on Investors Agenda report stated that 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.
Sankey Prasad, Chairman & Managing Director at Colliers India, believes India’s favorable 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. He said strong economic and business fundamentals are enhancing institutional investors’ sentiments, forging strategic partnerships to expand their portfolios.
Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India, says 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, investments in Indian real estate has been getting broader and diversified with newer emerging concepts and themes. India’s attractiveness from manufacturers, occupiers, and investors’ perspective in the Asian Market is on the consistent upswing.”
Global investors, as per the report, have looked favorably at Indian real estate because of resiliency, positive economic outlook and promising growth prospects of the sector. During the period 2017 – 2022, foreign investments accounted for a sizeable share of 81 percent of the total investments in real estate. India’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. The report said institutional investments in real estate continue to remain upbeat in Q1 2023 as well, rising by 37 percent year-on-year at $1.7 Billion, led by the office sector.
Colliers India noted that the Indian property market offers attractive pricing, better valuations, and higher yields. India is a preferred investment destination at the APAC level. Indian cities offer higher yields compared to other cities in the region. Bengaluru and Mumbai are at the second and third positions respectively, in terms of commercial yield across the APAC region.
Moreover, India plays a pivotal part in the region and has attracted significant investments over the years. Its robust infrastructure growth, stable political climate and resilient economy have drawn investors from across the world.