November 24, 2021 - Waveone Blog

Day: November 24, 2021

India to Bring In $2.5 Billion FDI in Real Estate Market in 2022: Report

India is expected to bring in $2.5 Billion foreign direct investment (FDI) or cross-border investment in the real estate sector in the year 2022. The US, UK, Germany, France, and the Netherlands will lead the leaderboard in terms of foreign investment, stated by the report published by Knight Frank.

“A series of structural reforms in the recent past has put the country’s real estate sector on a high trajectory attracting global attention. Rapidly improving pandemic scenarios in the country coupled with policy interventions to support realty sector growth will ensure global capital finds it attractive to participate in the sector. The country’s commercial real estate sector has evinced strong global investor interest in segments led by Office and Warehouse,” said Shishir Baijal, CMD, Knight Frank India.

The office sector is expected to grow at a faster pace and will attract most cross-border investments. This is a sign where we can expect to move more towards the normal. The second most attractive sector for cross-border investment would be residential. Also read – Top 7 urban areas see 113% rise in housing sales, new start bounce.

This huge amount of investment will bring new positivity and energy into the market, which was struggling due to the pandemic. The real estate market is one of the most important segments of our economy. This investment would help it get it back on track and make people more confident about investing it in again.

“The real estate sector plays a multiplier effect in the development of the economy and the ecosystem of the country. The sector is expected to reach a market size of USD 1 trillion and contribute 18-20 percent of the country’s GDP by 2030,” said NITI Aayog CEO, Amitabh Kant.

He further added that the Securities and Exchange Board of India (SEBI) has already given a green light to the Real Estate Investment Trusts (REITs), where opportunities worth Rs. 1.25 lakh crore will open which help the sector in the coming years. Also read – Step by Step, Indian Real Estate is Reviving From Covid Effect.