Reports show an increase of nearly 9 per cent in Indian real estate sector for the year 2019 as compared to the previous year escalating to touch Rs 43,780 crore (USD 6.2 billion). Despite the economic decline, sectors like Foreign Private Equity (PE) investors including pension and sovereign funds have seen a noticeable growth. With 78 percent of the overall investment coming just from foreign funds, it has become the highest share ever in the sector.
46% of the total inflow was through commercial office assets which added up to a sum of Rs 19,900 crore (USD 2.8 billion) and is still on a steady upsurge. Looking at such vigorous demand and rental appreciation for office assets, it is expected that investors remain focused on acquiring the same over the next three years.
Stats have projected an annual gross absorption averaged at 52 million sq ft for the top 7 cities in India during 2020-2023, surpassing the previous five years by 12 per cent.
In terms of investment Mumbai is still in the lead responsible for 25 per cent of total investment inflow, with Bengaluru emerging to the second spot overtaking Delhi-NCR with inflows of Rs 4,650 crore (USD 655 million) in 2019.
Looking at the stats, more growth can be expected ahead with predicting a growth of 5 per cent or Rs 46,170 crore in the coming year.