Investments in the Indian real estate market increased 27 percent to touch $6 billion in 2019, CBRE South Asia said in a report.
Investment activities were dominated by the office sector and the development sites and land, with each commanding around 40 percent of the inflow of funds. This was followed by 11 percent investment in hotels.
The investment activity in all the key segments was led mostly by foreign players who contributed to the tune of 65 percent. The total investment made by the domestic players in various real estate projects accounted for 35 percent.
The key gateway cities of Mumbai, NCR, Bengaluru and Hyderabad led the investments.
The investment in development sites or lands in 2019 saw a 5 percent increase as compared to 2018. The hotels' segment saw a 10 percent increase in the total investment against that of 2018, the report said.
“The healthy investment activity in the real estate sector is a testimony of its performance and resilience. With the industry becoming more organised, transparent, and profitable, it will continue to attract investments from global as well as domestic players. The steps initiated by the government to increase liquidity in the market has also worked well in increasing the confidence of investors,” Anshuman Magazine, chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.The findings also mentioned that the sector received a total investment of $4.8 billion in 2018. City-wise the investment activities were led by Mumbai, National Capital Region (NCR), Bengaluru and Hyderabad, the report said.