It’s the start of a new year, majorly a new decade. The last 10 years have witnessed some revolutionary changes and scary tumbles. Nevertheless, we are marching forward. The forecasts for the year 2020 look promising and one industry that seems most benefitted is Indian Real Estate Sector. As per a recent report, the real estate investment in India is set to grow by a promising 5%, to approximately USD 6.5 billion. This report has been generated by global property consultants Colliers. According to them, this sharp rise is a result of increasing demand for office assets by upcoming and existing industries.
Colliers project report has predicted an approximate inflow of USD 6.5 billion in the sector, and they expect the investors to remain committed to their respective commercial assets for a minimum of three consecutive years.
What is it that has suddenly diverted investors’ attention so sharply in the direction of Real Estate? If experts are to be believed, then the recent tax and law reforms such as Goods & Service Tax, Insolvency & Bankruptcy Code, Real Estate Regulatory Authority, and more, are the reasons in Indian Real Estate Sector, coupled with newly formed relaxation laws for foreign direct investment. If we take a look city-wise, Colliers suggests the investors block their assets in growing areas of Pune, Bengaluru, and Hyderabad. These cities that are growing at a substantial pace in terms of living index and employment offer a meaty choice of real estate at affordable prices, at the moment. Another reason is the fact that apart from popular and predictable cities such as Delhi and Bengaluru, wherein people relocate for employment opportunities, they are also looking up to the aforementioned cities of Hyderabad, Pune, and Bengaluru. Experts predict that this is where a major boom in the real estate industry is happening. The advent of co-working spaces is also causing a flourish in this sector.
As per various reports, foreign investors to have expressed a keen interest in India’s real estate market. Last year itself, several offices were purchased by foreign brands, comprising nearly 78% of the overall investment in real estate. That is indeed a huge proportion.
Real estate investments are only going to grow with time. In fact, it is predicted that it will comprise nearly 40% of the total investment flow, this year.
This is indeed welcome news in the times when we are reading continuous reports of the economic slump in India. Is the country finally starting to shake off some of it? At least for the real estate industry, it seems like.