Overseas investors will likely invest to the tune of US$4-5 billion in the real estate sector of India in the next two years, according to global reality consultancy firm Jones Lang LaSalle's latest estimate.
Jones Lang LaSalle said that foreign investors who pumped their money in India's real estate sector around 2006-07 didn't have very good experience, partly due to global financial slump. But, the country's still robust economic growth rate has renewed foreign investors' interest.
Alastair Hughes, Asia-Pacific CEO at the reality consultancy firm, said, "Foreign investors are now looking with a renewed interest at India, given its still robust economic growth rate as that bodes well for good returns to their investments."
Hughes added that foreign fund inflows would likely pick-up in the realty sector of the country going forward. He was speaking at the World Economic Forum annual meeting on Sunday.
Between 2006 and 2012, foreign investors invested nearly $14 billion into the Indian reality sector. For the past couple of years, foreign investors have been pumping nearly $1.2 billion per annum into the Indian real estate sector.
Nearly, 50 per cent of all the investments were made in residential property, while the offices sector and the other sectors accounted for the remaining half.
Half of those investments came from the United States, while the remaining came from West Asia, Singapore, the United Kingdom, Germany and Hong Kong.
- Toshiba, United Technologies ink agreement for global growth in HVAC solutions
- Google offers artificial personal assistant for users ready to give up personal info
- Apple launches iPhone 6, iPhone 6 Plus in India
- Google profits plunges 5 percent YOY, in Q3
- HCL Technologies Q1 Net up 32.3% at Rs 1,873 crore