By
Tricitynews
Chandigarh
27th June:- Knight Frank, the independent global property
consultancy, today launched Active Capital: The 2018 Report. Looking at the
shifts in capital flows, the report dives into the sources and destinations of cross-border
investments in commercial real estate.
India ranks
an impressive 19th position amongst the 73 countries that attracted
cross-border capital into their property market in 2017. With USD 2.6 bn of
cross-border capital inflows (excluding development sites), India ranks ahead
of its Asia Pacific regional counterparts like Malaysia, Thailand, Indonesia,
Vietnam and Philippines, who collectively attracted lesser capital flows
compared to India.
Capital flows into Indian property market
have been 10 times higher than the outflows in
2017. USD
2.6 bn of inflow was recorded compared to outbound capital flows to the tune of
USD 0.26 bn last year. Led by a battery of reforms like RERA, GST and demonetisation,
the attractiveness of Indian real estate potential has caught the fancy of
international investors and developers alike resulting into this favorable
investment account.
Compared to
86% share in 2016, United States, Canada and Singapore collectively contributed
to 84% of capital inflows to Indian property followed by United Kingdom, United
Arab Emirates and Hong Kong in 2017.
Shishir
Baijal, Chairman & Managing Director, Knight Frank India, said that cross-border
capital inflows (excluding development sites) to India stood at USD 2.6 bn in
2017 recording a 31% growth over 2016. Ranking an impressive 19th position
amongst 73 countries that attracted cross-border capital into their property
market, India has surged ahead of its Asia Pacific regional counterparts which
collectively attracted lesser capital flows compared to India.
The changes
in business environment brought by landmark reforms like GST and RERA besides
others coupled with government impetus for affordable housing and an imminent
possibility for REITs as an asset vehicle have infused confidence among the
stakeholders of the Indian property market. 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
paradigm shift in Indian realty’s potential as an attractive investment avenue.
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