When foreigners take a country's real estate market seriously and start writing investment checks worth billions of dollars, it spells both 'good news' and 'compelling investment' with the same letters on a scrabble board.
Newsletter jokes apart, the Indian real estate sector was indeed a compelling investment option for foreign investors, even as we were battling the pandemic, a non-banks crisis and the occasional collapse of our top real estate builders.
Yeah? Tell Me More
Sure. Per a Colliers and FICCI
joint report, in the 2017-21 time frame, foreign capital flows in Indian real estate jumped threefold to USD24 billion, compared to 2012-16.
And with all that dough coming in, our realty sector's foreign investment share has grown to 82% during 2017-2021, which was at 37% during the preceding five-year period, the report said.
From Opaque To Transparent
But what triggered this U-turn in the feelings of the foreign investor?
As the Indian real estate regulatory environment improved, foreign investors, who earlier refrained from investing here due to a lack of transparency, have begun investing in the country with renewed vigour since 2017.
Where's The Money Going?
💰 Office real estate witnessed a significant uptick in foreign capital inflow post regulatory reforms in 2016.
💰 Industrial and logistics assets have seen increasing investment activity in the last five years, driven by robust demand from E-commerce and 3PL firms for modern warehousing facilities.
💰 Alternative assets like life science labs, data centres, flex spaces have become compelling options as investors seek new avenues for growth and returns.
