Should investors give in to the office space buzz?6 min read . Updated: 26 Feb 2020, 12:18 PM IST
- Commercial real estate is doing well but assess the risks before investing in it
- Experts do not advise retail investment in physical commercial real estate—shop, office or land
Recently, finance minister Nirmala Sitharaman said in a conference that several important indicators have emerged in the recent past pointing towards green shoots in the economy. She talked about seven such indicators, one of which was the fund flow coming from outside the country. The minister said that global sentiment was in favour of India and the country received foreign direct investments (FDI) of $24.4 billion from April to November 2019 compared to $21.2 billion in the corresponding period of the previous year. According to various estimates, commercial real estate attracted a significant portion of the total FDI. “The year 2019 concluded with private equity (PE) investment volumes being recorded at healthy levels of ₹43,704 crore ($6.2 billion) in real estate, a 3% year-on-year increase. Foreign investors made up a significant share (72.9%) of the overall investment inflows during 2019," according to data compiled by Cushman & Wakefield India, a real estate consultancy.