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CBRE South Asia, a real estate consulting firm, has announced that the country’s real estate sector witnessed total fund inflow of $6.6 billion during 2019, up 27 per cent over the $4.76 billion it registered during 2018.
The investment, according to CBRE, is across all key categories in the sector.
The findings of the consulting firm further stated that the investment activities were dominated by the ‘office sector’ and ‘development sites/land’, with each commanding around 40 per cent inflow of funds. This was followed by 11 per cent investment in hotels. The investment in ‘development sites/lands’ in 2019 saw a 5 per cent increase as compared to 2018. The hotels segment saw a 10 per cent increase in the total investment against that of 2018.
Robust performance
Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East and Africa, CBRE, in a statement said: “The healthy investment activity in the real estate sector is a testimony of its performance and resilience. With the industry becoming more organised, 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.”
“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. 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,” added to the CBRE executive.
Giving a comparison of the investment received, the findings also mentioned that the sector received a total investment of $4.8 billion in 2018. City-wise, the investment activities were led by Mumbai, Hyderabad, National Capital Region (NCR) and Bengaluru.
The investment activity in all the key segments was led mostly by foreign players who contributed to the tune of 65 per cent. The total investment made by the domestic players in various real estate projects accounted to 35 per cent.
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