The Federation of Indian Chambers of Commerce and Industry (FICCI) and Vestian in their report have said that real estate sector got $2.7 billion fund inflows in first half of 2019, despite the continuing slowdown in the sector driven mainly by various regulatory changes. Improvement in infrastructure, roads, and the metro networks coupled with the increased speed of technology implementation can further boost investor interest.
The report mentioned that the momentum of investment in the realty sector between 2015 and 2018 continued in the first half of 2019, with nearly $2.7 billion flowing in. Between 2015 and 2018, fund inflows stood touched $25.7 billion. It further highlighted that one of the major trends observed in the last decade has been the rise in institutional investment in real estate, particularly PE investments that has been a key factor in keeping the market confident about its revival. It added nearly 80 percent of institutional investments are accounted for by PE investors.
With 50% of total investments, commercial assets has seen highest amount of investments. The investment value in the segment was recorded at $14.2 billion during 2015-18, depicting several large-scale deals. This was followed by warehousing and logistics sector. Moreover, it noted that despite occupying the least share, investment into industrial assets, mainly comprising warehousing and logistics sector, has observed considerable interest in 2018 and 2019.