Real estate witness 27% increase in investment in 2019: Report

Real estate recorded a 27% increase in investment in 2019 with approximate fund inflow of USD 6 billion across all key categories, according to a report by property consultant CBRE.

The investment activities were dominated by office sector and development land with each commanding around 40% inflow of funds. This was followed by 11% investment in hotels.

“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,” said Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.

The investment activity in all the key segments was led mostly by foreign players who contributed to the tune of 65%. The total investment made by the domestic players in various real estate projects accounted to 35 %.

“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,” said another CBRE official.

Giving a comparison of the investment received, the findings also mentioned that the sector received a total investment of USD 4.8 billion in 2018. City-wise the investment activities were led by Mumbai, National Capital Region (NCR), Bangalore and Hyderabad.

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