India poised as one of the most desirable destinations for Global Realty Investments

By : 360 Realtors

25 September, 2017

2017 is going to be the landmark year for the Indian real estate industry with so many regulatory reforms taking place in order to induce transparency and reliability into the system. The game changing reforms like Demonetization, Benami Transactions Act, Goods & Services Tax, and the Real Estate Regulatory Act (RERA) have brought out a tremendous change in the way the transactions are being done.  Major cities like Gurgaon, Kolkata and Mumbai are some of the most preferred investment destinations, while smaller cities like Chandigarh, Indore, Nagpur, Bhopal and Raipur are also being preferred by prospective home-buyers for making an investment.

India is a rapidly-developing economy of the world which is expected to grow at 7.2% this year. The nation has successfully managed to reserve the top rank for itself in the list of preferred realty investment destinations in the eyes of major institutional investors, leaving behind China.

What is driving improvement in the country is mainly its domestic consumption, as the middle-class strata of the society will soon find properties matching their tastes and requirements. Moreover, the frequent interest-rate cuts announced by the central bank have made the conditions simply perfect for property purchases.

India is experiencing an appreciable increase in much-needed business-park development sector. Furthermore, due to the lack of infra-facilities in its respected cities, there are new businesses and residential localities coming up in the suburban areas.

Adding charm to the beauty of the situation, as per the recent reports, there has been a rise of 3% annually in the worldwide realty investments made in India in the last two years. A similar trend is being seen in the year 2017 as well. The investors across the globe are quite positive of the nation’s long-term economic potential and this is what is driving the flow of funds in the country. Majority of the global realty investments that are being done in India in 2017 are in the commercial realty segment across cities like Chennai, Hyderabad, Bengaluru, andPune. These cities are well-developed and well-placed beating the other prime cities from the developing economies of Asia-Pacific region. The main reason for pushing the commercial space demand in gateway cities remains to be outsourcing followed by co-working spaces.

Talking about the global real estate investments, there was a total of $4,731 million invested in India in 2015 and 2016 saw an investment of $4,871 million, indicating an annual increase of 3 %. Year 2017 is also projected to witness a much higher investment volume. This is mainly due to the reason that the global investors are quite hopeful that in spite of the ban on the high currency notes, resulting in temporary slowdown of economic activities, the recent electoral gains and reduction of grey economy will help the Prime Minister to give a boost to the long-term economic potential of the country through the regulatory reforms being implemented.

Our country seems to be at the best place in the list of emerging markets for global realty investments. The Asia-Pacific region is projected to have almost 44% of the total $1.4 trillion global realty investments. 

Inclusive of the Indian share, the region is estimated to accumulate investments worth $611 billion out of the total 1,394.3 billion. An almost similar trend was witnessed in 2016 with worldwide realty investments coming out to be $601.3 billion (43.7 %) of $1,373.7 billion.

However, Asia with the continuation of reforms and stabilization of economic conditions will also be amongst the leading emerging markets of the world. Then there would be North America garnering a global realty investment volume worth $470.8 billion followed by Europe, Middle East and Africa (EMEA). In the current year, Latin America is likely to witness an investment value of $5.01 billion in the real estate sector.