The real estate market of India has witnessed a major revival in recent times.
John Forrester, global president, Cushman and Wakefield said that the slew of reforms introduced in the Indian real estate sector over the past 2-3 years have been helping the market move towards improved transparency and attract more foreign institutional investors.
The inflow of private equity in India’s realty market has increased by over 10 percent from a year ago. This has mostly been driven by the growing investment appetite for commercial properties. Private equity firms have invested around $4.2 billion in the first half of 2019.
“We see an abundance of opportunity in the domestic market here in India. There are a lot of demographic and economic tailwinds for India that don’t necessarily exist in other markets,” added Matthew Bouw, CEO, Asia-Pacific, Cushman, and Wakefield.
There had been a delay in deliveries in the past few years leading to the dissatisfaction of the consumers. Taking this into consideration, real estate developers’ business models are going through a change.
“Your business models have changed because the capital infusions have become much more capital-heavy, while on the other hand, the regulation has completely changed the landscape,” said Forrester.
Forrester and Bouw both agreed that the residential realty market of India has been slumping down however affordable housing segment continues to perform well in the backdrop of the Government’s objective of Housing for All by 2022.
Forrester added that with the slew of reforms, the Indian economy is getting more sophisticated and it is an easier place to do business.