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With the real estate sector on the brink of a massive revival, global investments in the market are expected to rise by 50% this year. As per studies, 98% of the investors are aiming to expand their portfolio in 2021. Among them, 60% are planning to expand it by over 10% and 23% of these investors are aiming to grow their portfolio by 20% or more. It is evident that the investors are going to make use of the pent-up capital in the real estate market. In fact, the current weight of the capital is enough to double the volume of the global investment with favourable market conditions.
The Indian real estate sector currently looks forward to a bright future, with an increasing number of investors eyeing India as their real estate destination. The realty industry in India proved to be resilient during the pandemic. At a time when the global interest rates are very low, the Indian realty sector has proved to be profitable. The returns generated from properties in India are quite high, considered against the quality of these assets. The investors with pent-up capital are expecting lucrative investment opportunities to emerge soon.
Right now, commercial properties are the most popular asset class among the global investors purchasing assets in India. In the real estate Mumbai, Bangalore and Delhi NCR recorded the highest volume of investments for office spaces, mixed-use projects and logistics in the respective order. This essentially hints at the rising demand for commercial and logistic assets as the business activities start to get back to normal. In Bangalore, data centres turned out to be the fourth most popular investment asset. It is to be noted that Bangalore being a leading IT hub, such digital infrastructure is high in demand. In Mumbai and Delhi NCR, however, the fourth place was occupied by residential units.
In the Tier-1 cities, top grade offices are one of the priorities as thbrands expanding their business after the pandemic seek office complexes that meet certain health, safety and technical standards. Logistics has undoubtedly grown popular as a result of increased commercial activities. The residential sector is flourishing due to the pent-up demand in the market. The launch of the COVID-19 vaccines has certainly played an important role behind this regrowth, by helping to restore normalcy. The Indian real estate industry is expected to remain buoyant and thrive well, with increased cash inflows into the sector.
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