Investments in India’s realty sector decline by 65% to $1.2 billion in 2013

Investments in India’s real estate sector fell by 65% to $1.2 billion in 2013 as compared to of $3.4 billion in the previous year, 2012, however, country's position remained constant at 10th most invested region in the Asia-Pacific. The Asia-Pacific region received overall investments of $487 billion. Country wise, China recorded the highest investments at $358 billion, followed by Japan ($44.6 billion). 

The report noted that in India, investments in land declined by 61 percent during 2013, while the office space witnessed 77 percent dip, compared to 2012. Investors have adopted a poignant pause as India is at a political cusp owing to the coming general elections, however, India continues to remain an attractive real estate market. Further, the report expects real estate investments in India to witness remarkable improvement by 2015.  

Indian real estate sector has evolved significantly over the last decade on the back of rising housing and services sectors. Increasing number of households, growing urbanization and higher employment are primarily driving the demand for housing.  While, high economic growth witnessed during past period also led to increase in demand for commercial real estate segment. However, over the last one and half year, prevailing high interest rates along with soaring inflation have been impacting real estate investment in the country.