India has been ranked 20th in the world's leading real estate investment markets, according to a report by global consultancy firm Cushman & Wakefield. At the top of the list, China boasts an impressive investment value of $304.1 billion.
MUMBAI: The recent report titled the International Investment Atlas reveals that global real estate investment activity experienced a 6% increase last year. This positive trend reflects a resurgence in investment volume during the last quarter, suggesting a robust recovery for real estate investments in the near future. With this revival on the horizon, projections indicate a growth rate of 14% in investments for 2013.
China leads the ranking with $304.1 billion, followed closely by the USA, which recorded an investment value of $267.1 billion. Together, these two countries dominate the global real estate investment landscape.
Rounding out the top five, the UK, Germany, and Japan occupied the third, fourth, and fifth places, respectively, with investments of $56.3 billion, $45.6 billion, and $34.7 billion.
In India, the real estate market witnessed a total investment of INR 190 billion, equating to approximately $3.4 billion last year. A significant portion of this was funneled through institutional sales, while private equity investments made up the remainder.
In contrast to the overall investment growth, private equity investment in the country saw a modest rise of 7% last year, although institutional sales experienced a considerable decline of 37%.
The majority of Private Equity in Real Estate (PERE) funds were allocated to operational and income-generating commercial properties. Notably, pre-launch residential projects attracted a significant number of PERE investments, with nearly 25 such deals reported.
Sanjay Dutt, the Executive Managing Director for South Asia at Cushman & Wakefield, emphasized that investments in the commercial sector are perceived as less risky. He noted that these investments also facilitate a steady influx of income. Furthermore, Dutt stated that the allure of commercial investments is increasing, making them more attractive in today’s market.
Last year, pre-launch residential projects garnered INR 28.5 billion from PERE funds, while the commercial sector obtained INR 32.3 billion, marking a 34% increase compared to the previous year.