Overseas Investment In Real Estate Market

Kishan Thakkar K

Although the Indian real estate market is at its peak, it has always been a very dynamic industry, contributing to 7% of the country’s GDP and providing the majority of employment opportunities. Moreover, by 2025, its contribution will have risen to 13%.

Investor confidence in the Indian real estate market is rooted in the following variables, based on investment trends over the last three months:

Direct Investment in the Sector

Perhaps the most important economic policy decision the Indian government has ever made is to liberalize FDI rules in the construction sector. This resulted in a nine-fold increase in real estate investment in Q2 2021, to $1.35 billion. A further $2.7 billion in investments were made in the first half of 2021, which is 53% of total investments in 2020, despite the second wave of the Coronavirus epidemic that hit India in April.

REITs Or Equity Investments in Publicly Traded Firms

Real estate and infrastructure are essential for fast-growing economies. By 2025, the real estate sector is expected to generate $650 billion, or 13% of India’s GDP. By 2040, it is expected to generate $9.3 billion, up from $1.72 billion in 2019. With these statistics, it is evident that real estate and infrastructure are attractive investment opportunities.

Vast Inflows of Capital Into the Prop-tech Sector

There is no denying the impact of technology on virtually every industry, and real estate is no exception. On one hand, the real estate industry has been quick to spot technology’s potential. Meanwhile, the government has been launching numerous initiatives to encourage the private sector to adopt similar practices. “Digital India,” “Global Housing Technology Challenge,” “IndiaChain,” and others are among the government’s major projects. As a result of the Coronavirus outbreak, technology has been incorporated into the real estate market in India.

The Indian real estate market’s long-term prospects are bright, especially with regard to the industry’s digitization, which is now a necessity due to the epidemic.

In Summary

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