[ecis2016.org] Global investors are optimistic about India’s long-term economic potential and this will drive the flow of funds into the real estate sector, says a report by Cushman & Wakefield
Global realty investments into India, rose by 3 per cent annually in the last two years and they are likely to see a similar trend in 2017 as well, according to a report by property consultancy, Cushman & Wakefield. Most of the global real estate investments in India during 2017 would be made in commercial office assets in Bengaluru, Chennai, Hyderabad and Pune. Interestingly, these cities are well-placed to outperform other cities from emerging economies in the Asia-Pacific region, said the report.
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[ecis2016.org] Indian real estate to attract USD 4.2 billion global investment: Report
“The global real estate investment volumes in India amounted to USD 4,731 million in 2015 and USD 4,871 million USD in 2016, indicating a 3 per cent annual increase and 2017 is expected to mark a similar investment volume,” Cushman & Wakefield’s senior director (research services), Siddhart Goel said. “This is because global investors are optimistic that despite the withdrawal of high-value bank notes, resulting in a short-term fall in economic activities, the reduction in its grey economy and recent electoral gains, will strengthen prime minister Narendra Modi’s hand to push through reforms, to boost long-term economic potential,” Goel added.
Further, the report said the Asia-Pacific region is expected attract nearly 44 per cent of the total USD 1.4 trillion global real estate investments, with India being one of the best places among the emerging markets in this respect. The Asia-Pacific region’s (including India) real estate sector is expected to garner investments worth USD 611 billion of the total 1,394.3 billion in the current year. The region had seen a similar investment trend in 2016, with global real estate investments amounting to USD 601.3 billion (43.7 per cent) of the total USD 1,373.7 billion.
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“Outsourcing will continue to push demand in the leading tech hubs, while co-working will add to demand in gateway cities. Some of the leading emerging market opportunities will be found in Asia, particularly if economic conditions stabilise and reforms continue. The region, overall, is in a stronger position than in past cycles, with economic resilience generally up,” the report added.
Asia-Pacific would be followed by North America, which may attract global real estate investments worth USD 470.8 billion and the Europe, Middle East and Africa (EMEA) region, with USD 307.3 billion investment volume. Latin America is likely to garner investment amounting to USD 5.01 billion in the realty sector in the current year, the report added.
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