Robust foreign investments despite pandemic bode well for real estate



Besides continuous good housing sales in the first quarter of CY 2021, the strong flow of foreign investments despite ongoing pandemic, holds good for the real estate in general and residential realty in particular.

 

How  Indian real estate has been receiving record domestic and foreign equity investments despite severe disruptions caused by Corona pandemic is clearly evident from a recent report by Anarock Consultants. According to   the report, the pandemic has failed to put brakes on the rising flow of private equity  investments. As per the statistics given in the report, real estate sector drew $6.27 billion of investments in FY 2021 , up 19% over $5.8 billion of investments received in FY 2020. It is not just the overall private equity that hit a new high in FY 21, even the average ticket size of the deals recorded an increase of 62%. A JLL report has also shown that overall institutional investments continued the momentum in real estate during the first quarter of this year. These investments touched $92.2 million mark, registering a yoy growth of 21%. The rising FDI had a positive rub off on Foreign Portfolio Investor (FPI) flows. FPI inflows touched a record $497 million in the month of March 2021.Foreign portfolio investors were hooked on to top listed developers .

 

Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global Group and Chairman, Assocham National Council on Real Estate , Housing and Urban Development, ” Despite getting a massive hit, real estate sector has shown great resilience amidst Corona pandemic. Besides betting big on rentable commercial assets , foreign and domestic investors have shown great interest in residential real estate. They are seeing a good business opportunity in last mile stress funding for incomplete/stalled projects. All this bodes well  both for the real estate sector in general and the residential sector in particular”.

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