The Indian real estate sector is witnessing a healthy rise in demand, particularly for office as well as residential spaces.
India is expected to attract investments worth US$ 7 billion in 2017, which will rise further to US$ 10 billion by 2020. India has been ranked fourth among developing Asia for FDI inflows as per the World Investment Report 2016 by the United Nations Conference for Trade and Development.
Data released by the Department of Industrial Policy and Promotion (DIPP) shows that the construction development sector has received Foreign Direct Investment (FDI) equity inflows to the tune of US$ 24.54 billion in the period April 2000-June 2017.
Private equity (PE) investments in the Indian real estate sector are estimated to cross US$ 4 billion in 2017, supported by India’s regulatory reforms over the past two years.
Fundraising and investments in India’s office space sector, which has already reached more than US$ 2 billion in 2017, are poised to rise higher with further foreign investment of US$ 1.4 billion, as local developers and foreign investors expand their portfolios through fresh investments, acquisitions or launch of Real Estate Investment Trusts (REITs) to build and acquire office assets.
South Korea’s Mirae Asset group is planning to expand its Indian operations and enter the real estate sector and will invest US$ 500 million in commercial leased properties.
A US$ 62.39 million investment platform is being set up by private equity firm ASK Property Investment Advisors and Emerald Haven Realty, which will focus on property markets in Chennai and Bengaluru.
US$ 2.51 billion as both debt and equity has flowed into Indian realty sector in the first half of 2017 and 56 per cent of these investments were in residential projects.
Indian real estate developer BPTP has raised funds around US$ 29.5 million from L&T Finance Holdings Ltd, which will be used to fund the construction of its two residential projects in Faridabad, Haryana.
International Finance Corporation (IFC) will invest US$ 200 million in Housing Development Finance Corporation Ltd (HDFC) via five-year non-convertible debentures (NCDs) or masala bonds which will be used by HDFC to provide loans for affordable housing projects across India.
Godrej Properties Ltd has tied up with Taj Palaces Resorts Safaris for developing its mixed-use project called ‘The Trees’, spread across 9.2 acres, that will include a 150-room Taj Hotel, a luxury residential property called ‘Godrej Origins’ as well as a high-street retail court.
Motilal Oswal Real Estate, a real estate-focused investment subsidiary of Motilal Oswal Private Equity Advisors Pvt Ltd, is planning to invest US$ 124 million in 2017-18 in mid-income residential projects as well as commercial office projects.
Xander, a Private Equity Group, has signed two major property deals, which includes a special economic zone worth US$ 354.95 million in Chennai and a 2 million sq ft mall in Chandigarh for US$ 108.5 million.
Canada Pension Plan Investment Board (CPPIB), the Canadian pension asset manager, has entered into a non-binding agreement with Island Star Mall Developers (ISML), a subsidiary of Phoenix Mills, to acquire up to 49 per cent in ISML in the next three years.
Altico Capital, a non-banking finance company (NBFC), has teamed up with American private equity firm KKR & Co LP to invest US$ 65.25 million in a 66-acre residential township, being developed by SARE Homes in Gorgon.
Gorgon-based property search aggregator Square Yards Consulting Pvt Ltd has raised US$ 12 million from the private equity arm of Reliance Group for strengthening its team and expanding its presence to more than 25 countries.
Rising Straits Capital plans to raise US$ 100 million to capitalise its real estate-focused non-banking financial company (NBFC), Rising Straits Finance Co. Pvt. Ltd.
A joint venture between Dutch asset manager APG Asset Management and real estate asset platform Virtuous Retail, has acquired a portfolio of three shopping malls for US$ 300 million, and has committed an additional US$ 150 million as equity capital to expand the portfolio.
Macquarie Infrastructure and Real Assets (MIRA) and Tata Housing Development Co. Ltd have entered into a 70:30 partnership to invest US$ 210 million and US$ 90 million) respectively in high-end residential property projects, starting with four major cities of Mumbai, NCR, Bengaluru and Pune.
Qatar Holdings LLC, a subsidiary of Qatar Investment Authority, has committed to invest US$ 250 million in the affordable housing fund of Arthveda Fund Management Pvt Ltd.
Piramal Realty, the real estate division of Piramal Group, plans to invest US$ 270.14 million in an eight acre project named Piramal Revanta in Mulund, Mumbai.
India is expected to attract investments worth US$ 7 billion in 2017 in real estate sector