Indian real estate turned out to be a preferred choice for global investors during the six years between 2017-22. The country received cumulative foreign institutional inflows (FII) of US$ 26.6 billion, a three-fold increase from the preceding six years, a report by Colliers noted.
The report called ‘India – High on Investors’ Agenda’ found that foreign investments accounted for 81 per cent of the total investments in real estate during the recent six-year period. Investor-friendly Foreign Direct Investment (FDI) policies, increased transparency in deal structures, and higher investment limits through direct routes have contributed to luring global investors to invest their money in Indian real estate.
Commenting on the findings, Colliers India’s managing director, and chairman, Sankey Prasad said the office sector saw the highest investments during 2017-22 and made up for 45 per cent of the total foreign inflows. Interest in alternative assets such as Global Capability Centers (GCCs) and data centres was also surging, he added.
As per the report, Q1 2023 saw an uptick in institutional investments in real estate in the country. It recorded a 37 per cent year-on-year growth being valued at US$ 1.7 billion, the majority of which was dominated by the office sector.
“Over the years, investment in Indian real estate has been getting broader and diversified with newer emerging concepts and themes. India's attractiveness from manufacturers, occupiers, and investor's perspectives in the Asian Market is on the consistent upswing,” said Piyush Gupta, MD, capital markets & investment services at Colliers India.