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There is a flood of money in the real estate sector, has the market taken off thanks to foreign investors?

Sagar Patel

By Sagar Patel

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Money is pouring into the real estate sector

A lot of money is currently flowing into the Indian real estate sector. Not only domestic investors but also foreign investors and FIIs are investing a lot of money here. If you go to buy a property in the market now, you will find that prices have skyrocketed. So, is this foreign money behind the boom in the market? How much money have foreign investors invested in the Indian real estate market?

Real estate advisory firm JLL India has published a report on the matter. According to it, institutional investment in the real estate sector has increased by 62 percent in the last six months. This has also been accompanied by a large amount of foreign investment.

money coming from abroad

During January-June this year, foreign investors have invested a total of $3.1 billion in the Indian real estate sector. This is around 65 per cent of the total institutional investment in the sector. During this period, the total institutional investment in the real estate sector has increased by 62 per cent to $4.76 billion. In the same period of the year 2023, this investment was $2.93 billion.

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JLL India says that despite the global uncertainty and election season, foreign investors continue to have unwavering confidence in India during this period. This tells the story of the country’s strong economic situation. The report says that out of the total investment in the real estate sector, the warehouse sector received 34 per cent investment. Following this, 33 per cent investment has been achieved in the residential sector and 27 per cent in the commercial sector.

Are prices rising due to foreign investment?

The flow of money has increased due to the increase in foreign investment in the market. That is why the market is experiencing a boom. However, in addition to the JLL India report, the report of another real estate consultant, Colliers India, contradicts the previous estimates. Their report says that the total institutional investment in the real estate sector has decreased by 6 percent during the first half of 2024. It has been $3.52 billion. According to Colliers, this investment in the same period last year was $3.76 billion.

The real estate market is eagerly awaiting the budget. The industry expects the government to focus on increasing demand in the upcoming budget. Sanjeev Srivastava, Founder and Chairman of Assotech Group, says that the country’s real estate sector is currently at an important juncture. Demand for residential, commercial and industrial real estate has increased in the market. But the government needs to focus primarily on affordable housing.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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