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The reform process in the country's real estate sector is set to trigger a wave of consolidation, making it an attractive destination for institutional investors, both global and domestic, according to real estate consultancy CBRE.
“The implementation of RERA and the GST regime, which will promote transparency and ensures compliance, will make India realty investments attractive to foreign investors looking for higher returns. These could be players in the insurance sector, pension funds and even sovereign funds,” according to Anshuman Magazine, Chairman, India & South East Asia, CBRE.
Reforms’ impact
The Fortune 500 real estate consultancy, a leader with its wide range of services, including financial facilitation, believes that while there could be a phase where sector players find the going tough, the overall impact of reforms would play a positive role in attracting investments.
“Significantly, it won’t be surprising to see even LIC and Provident Funds parking a part of their funds in the real estate sector for higher returns,” he said.
Referring to the recent moves to tackle insolvency, Magazine felt it would play a role in consolidation of the realty market where smaller players would get acquired or merged with bigger players.
Magazine, who was in Hyderabad to inaugurate their new office, said the consultancy, which has a strong market presence across all spheres of activity in the real estate, including consultancy for financials, sees strong inflow into the country.
Hyderabad market
CBRE, which employs about 700 people in the Hyderabad region, expects to double its headcount over the next two-three years as the market is expected to grow significantly.
The expansion is aimed at providing enhanced services to developers, occupiers, Investors and end-users.
The Hyderabad organised retail market, which has witnessed a robust commercial and industrial landscape and seen enhanced activity in the retail, is set to touch 10-million sq ft by 2019 and become one of the fastest growing markets in the country.
The commercial office intake in Hyderabad doubled from 3 million sq ft in 2014 to 6 million sq ft in 2016 and is projected to cross 7 to 7.5 million sq ft during 2017, making it the fastest growing market in the country.
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