The first half of calendar year 2017 witnessed an investment inflow of ₹16,000 crore into the real estate sector, the highest ever during an H1 period.
“2017 seems to have set a new milestone. The total investment in H1, which stands at more than ₹16,000 crore, is the highest ever seen in any year’s first half,” said Shobhit Agarwal, Managing Director – Capital Markets & International Director, JLL India.
“Given the scale, 2017 seems set to break all previous investment records,” he added.
Attributing the surge to a slew of reforms unleashed by the government, Agarwal said, “Reforms are changing the investment scenario in the country and has made India one of the most attractive emerging markets, from the investment point of view.”
“So much that a comparison between the debt and equity investments seen between 2014 and H1 2017, which stand at more than ₹98,000 crore, are higher than the ₹95,000 crore seen during an entire decade from 2003 to 2013,” said Agarwal.
Big bang policy reforms, economic and political stability, liberalisation of the FDI policy and the resultant improvement in the investment community’s sentiment are some of the factors working in real estate’s favour.
“GST, RERA, REITs, the Benami Property Act, demonetisation and constant focus on affordable housing will lead to the sector evolving into a more mature, consolidated and highly transparent industry. This, in turn, is expected to attract further private equity from abroad,” Agarwal added.