According to a report by property consultant CBRE, real estate recorded a 27 per cent increase in investment in 2019 with approximate fund inflow of USD 6 billion across all key categories.
Office sector and development land dominated the investment activities with both commanding around 40 per cent inflow of funds, followed by 11 per cent investment in hotels.
Talking about the report, Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East, and Africa, CBRE said, “With the industry becoming more organized, transparent, and profitable, it will continue to attract investments from global as well as domestic players.”
“The steps initiated by the government to increase liquidity in the market has also worked well in increasing the confidence of investors,” he added.
Mainly foreign players contributed to the investment activity in all the key segments at the tune of 65 per cent. On the other hand, the total investment made by the domestic players accounted for just 35 per cent.
“India has emerged as a strong regional hub for institutional investors looking for opportunities in office, retail, warehousing, and hospitality. This is underlined by significant foreign capital being deployed at land stage,” said another CBRE official.
“We expect India to be better placed in the region on a relative basis due to the robust handling of the COVID-19 situation by the government,” he added.
According to the findings of the report, the sector received a total investment of USD 4.8 billion in 2018. The investment activities were led by Mumbai, National Capital Region (NCR), Bangalore, and Hyderabad.