The World Opinion

Tag: Real Estate Sector

  • Foreign Investors Infuse $436 Mn In India’s Real Estate Sector, 139 Per Cent YOY Increase In Q3 2024 | Economy News

    New Delhi: Institutional investments in India’s real estate sector witnessed an annual growth of 41 per cent in Q3 2024, reaching $0.96 billion. However, it sharply declined from the $3.1 billion record investments received in the previous quarter, according to a report.

    A Vestian Research report said that despite this significant quarterly decline of 69 per cent, the outlook remains positive as investment nearly touches a billion mark.

    “The significant uptick in investments compared to the previous year is a testament to India’s robust economic growth amid prevailing geopolitical challenges. As a result, the share of foreign investors increased from 27 per cent in Q3 2023 to 46 per cent in Q3 2024,” it said.

    “Conversely, the share of domestic investors declined to 43 per cent in Q3 2024 from 71 per cent in the same quarter a year earlier. However, the decrease was only 15 per cent in terms of value,” the report said.

    Vestian CEO Shrinivas Rao said: “Investors have shown confidence in India’s growth story on the back of robust GDP growth. As a result, the real estate sector witnessed increased participation from foreign investors which led to institutional investments touching a billion mark in Q3 2024.”

    “Additionally, domestic investors are also actively participating, supported by the rapid infrastructure development across the country,” he added.

    Residential assets were the first preference for domestic investors during Q3 2024 whereas foreign investors accounted for 64 per cent of the commercial deals. The growing prominence of work-from-office mandates and GCCs (global capability centres) lured foreign investors, leading to an increase in the share of commercial investments from 24 per cent in Q3 2023 to 71 per cent in Q3 2024.

    On the other hand, the share of the residential sector reduced to 19 per cent in Q3 2024 from 44 per cent in the same period a year earlier. However, investment in residential assets is expected to grow in the coming quarters as niche asset classes such as co-living, senior housing, and serviced apartments are gaining traction.

    According to the report, Chennai received the highest investments during Q3 2024 with a 48 per cent share, and a majority of investments in the city were concentrated in industrial & warehousing, commercial, and residential sectors.

  • Real Estate Sector To Contribute 15% To India’s GDP By 2050: NAREDCO President | Real Estate News

    Indian real estate is rebounding and there is no doubt that it’s an important contributor to the country’s economy. While the sector is likely to touch a market size of $1 trillion by 2030, its contribution may increase to 15% to the country’s GDP by 2050, feels G Hari Babu, National President of NAREDCO. The 3-day real estate workshop is jointly organised by The National Real Estate Development Council (NAREDCO), under the aegis of the Ministry of Housing & Urban Affairs, and Delhi RERA.

    Addressing the participants at the inaugural workshop at the 2nd Management Development Programme, ‘RERA & REAL ESTATE ESSENTIALS’, he said, “With a current market valuation of 250 billion dollars, the real estate sector is with the expected growth rate of 16-17% will almost contribute around 15% to the country’s GDP by 2050. Among other things, this industry requires a large number of trained professionals considering its size, time and value involved.”

    Anand Kumar, Chairman, NCT of Delhi RERA said, “Real estate is a dynamic sector and the pace of change has only accelerated in the last few years and by imparting transparency to the sector, RERA has a big role to play in this. However, despite all the efforts, people are not aware of the provisions and guidelines of RERA. This workshop is a step in that direction. Further, we not only need to understand the gradually evolving landscape but also equip realty professionals with the right knowledge, foster professionalism and instil the culture of compliance among all stakeholders involved.”

    Harsh Bansal, President of Delhi NAREDCO said that the real estate and construction sector is not only the second largest employer in the country but also contributes significantly to its GDP.