Realty market to see more global funds inflow in next 3-5 years
India’s real estate sector is likely to see increased interest from global investors and allocation of long-term capital in the next three to five years given strong fundamentals and muchrequired regulatory and policy initiatives, said industry executives. The property market, which witnessed institutional flow of funds at a 10-year-high in 2018, has seen Asian funds such as GIC, Ascendas-Singbridge and Temasek increasing their direct investments across categories including assets yielding rent. “India will also see developers investing from balance sheet funds from Asian economies participate in India for asset creation. These developers will not only bring in much-needed equity capitalisation but also real estate expertise and new products,” said DiwakarRana, managing director-capital market at Savills India, an international property consultancy and brokerage firm. The market is also expected to see investors looking beyond rent-yielding offices to bet on demand-based sectors such as logistics, warehousing, data centres, co-living and student housing, build-to-core offices and urbanisation projects. Currently, office space accounts for 50% of the overall investment in India.
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