PremiumThe robust growth has put India on the 19th spot among 73 countries, which attracted cross-border capital into their property markets, says a Knight Frank report
Mumbai: Capital inflow into the Indian real estate market witnessed a jump of 31% to $2.6 billion in 2017, primarily on the back of the government’s reforms initiatives and new regulations, a Knight Frank report said.
According to the global consultancy firm’s Active Capital: The 2018 Report, released on Monday, the robust growth has put India on the 19th spot among 73 countries, which attracted cross-border capital into their property markets.
The top three spots were held by the US, the UK and Germany, which have attracted the maximum investments since 2010.
India is ranked ahead of its Asia Pacific neighbours, including Malaysia, Thailand, Indonesia, Vietnam and Philippines, which collectively attracted lower capital flows compared to India.
“India is perhaps the standout example of recent years, with investment growing by 600% since 2012 to reach $2.6 billion in 2017," the report said.
Led by the new real estate regulations, implementation of the goods and services tax and demonetisation, the attractiveness of Indian real estate has caught the fancy of international investors and developers, it added.
The government’s push for affordable housing and an imminent possibility for REITs as an asset vehicle have also infused confidence among stakeholders of the Indian property market, said Shishir Baijal, chairman and managing director, Knight Frank India, in a statement
The US, Canada and Singapore collectively contributed to 84% of capital inflows to Indian property market in 2017, followed by the UK, United Arab Emirates and Hong Kong.
However, capital outflow from India remained volatile at $1.9 billion between 2014-2017, compared to $2.5 billion during 2010-2013. About 80% of the outbound capital flows from India find place in Austria, the US and Singapore, while the rest finds its way into the UK and Portugal, the report said.
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