Capital flows into the Indian property market stood at $2.6 billion in 2017, ten times higher than the outflows, as policy reforms coupled with an impetus for affordable housing and possibility for REITs infused confidence among stakeholders, according to Knight Frank.
The cross-border capital inflow at $2.6 billion is a 31 per cent growth over 2016.
19th among 73
India ranks 19th among the 73 countries that attracted cross-border capital into their property market in 2017.
India ranks ahead of its Asia-Pacific competitors Malaysia, Thailand, Indonesia, Vietnam and the Philippines, which collectively attracted capital flows less than India. “Led by a string of reforms such as RERA, GST and demonetisation, the attractiveness of the Indian real estate potential has caught the fancy of international investors and developers alike,” Shishir Baijal, Chairman & Managing Director, Knight Frank India, said.
Growth potential
In the latest four-year period (2014–2017), the inflows were over four times the outflows compared to the earlier four-year period (2010–2013) when they were at par.
This highlights a shift in Indian realty’s potential as an attractive investment avenue, Baijal said.
Compared to 86 per cent share in 2016, the US, Canada and Singapore collectively contributed 84 per cent of the capital flows to the Indian property market, followed by the UK, the UAE and Hong Kong, Knight Frank said.