The fairly good recovery in economy , business and job market in the aftermath of subsiding Corona pandemic bodes well for the overseas investments in India which in turn will have a positive impact on real estate growth in the coming year.
The FDI scenario in the first half of 2021 paints a promising picture. Real estate investment, according to JLL topped $1.35 billion in Q2 2021, thereby reflecting a nine- fold increase. Despite the second wave of Corona virus that hit India in April this year, the first six months of the current year saw investments worth $2.7 billion which is 53% of the total investments registered in 2020. According to Knight Frank India’s Active Capital Report 2021, next year the cross-border investments in real estate will be driven by commercial office real estate. The share of the commercial office segment will be more than 50% of the total FDI, followed by residential real estate. Mid- priced housing will dominate the FDI in residential real estate.
Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, Assocham National Council on Real estate & Housing, “In the backdrop of structural reforms and in view of the current scenario of receding covid pandemic and much improved vaccination coverage, besides government policy initiatives to support covid hit realty, India will remain an attractive foreign investment destination. This will bode well for the growth of the real estate sector.