Re­alty Likely to At­tract $7b In­vest­ments in 2017

The Economic Times - - Economy & Companies - Our Bureau

Mum­bai: Ris­ing in­sti­tu­tional in­vestor con­fi­dence and appetite for In­dian real es­tate on the back of at­trac­tive as­set val­u­a­tions and a favourable reg­u­la­tory en­vi­ron­ment are ex­pected to push in­vest­ments into the sec­tor to $7 bil­lion in 2017 from $6 bil­lion in 2016, showed a re­port.

The sec­tor had wit­nessed $0.8 bil­lion in­vest­ment in 2008, $1.2 bil­lion in 2010, $3.2 bil­lion in 2012 and $4 bil­lion in 2014.

While of­fice and res­i­den­tial are ex­pected to re­main tra­di­tional driv­ers for the in­dus­try; al­ter­nate sec­tors such as re­tail and ware­hous­ing will also come to the fore­front in 2017.

The sec­tor is wit­ness­ing un­prece­dented in­ter­est from off­shore eq­uity in­vestors, large In­dian cor­po­rates and high net worth in- di­vid­u­als (HNIs) as in­vestors be­lieve that the sec­tor now of­fers a level play­ing field with at­trac­tive re­turns, said a CREDAI-CBRE re­port.

“The above sen­ti­ment is fur­ther en­dorsed by a cycli­cal de­cline in in­ter­est rates in 2016. This has dras­ti­cally re­duced the cost of do­ing busi­ness for all in­vestor classes. Even ‘struc­tured debt’ has evolved from be­ing a “high-cost source of fund­ing” to be­ing a very vi­able source of fund­ing with suc­ces­sive in­ter­est rate cuts,” said the re­port. The com­bi­na­tion of mea­sures like RERA, GST, eas­ing of FDI norms, de­mon­eti­sa­tion are likely to help in catalysing ease of do­ing busi­ness in the coun­try while sup­port­ing cor­po­rate en­ti­ties en­ter­ing or ex­pand­ing their foot­print in In­dia.

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