Foreign investors' interest in Indian real estate is on the rise once again almost after 5 yrs

Q: Foreign investments back in Indian real estate after 5 slow yrs.

Lekshmi,

7th January 2016

Real estate News in Mumbai

real estate

foreign direct investment

foreign investments in indian real estate

gfc

global financial crisis

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Replies (2)

In 2014, the contribution has increased considerably to 70% that hints positivity in realty market to stay for some more time.

Amreesh Murugan,

7th January 2016

Comment

Right Amreesh,
And the cycle started gaining momentum again just before the 2014 general elections. $2.2 billion has been raised so far in the current investment cycle. This shows a definite rise in confidence for Indian real estate.

V. Victor,

7th January 2016

@Victor,
In this period, not only has the volume of investment increased but there has also been an increase in the average ticket size from $134 million to $184 million. If investment done in US Dollar alone is considered, the average ticket size gone up from $159 billion in 2009-13 to $388billion in the ongoing phase that started in 2014.

Rituraj,

7th January 2016

As per the report, India-specific cumulative fund raising reached its peak in the pre-global financial crisis period. During this period between 2005 and 2008, there were 50 such funds that raised $16 billion in total. However, post-global financial crisis, only 29 funds got raised in 5 yrs, with increase fundraising of $3.9 billion.

Amreesh Murugan,

7th January 2016

Comment

Yes, during this pre-GFC phase, 82% of funds got raised in US Dollar. This reduced to 57% in post-GFC phase when micro-market understanding was required more than banking on the macro-economy.

Rituraj,

7th January 2016