The secret behind foreign investors increased interest in the Indian real estate market

Written by Posted On Monday, 25 February 2019 04:41
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It is no secret that India’s economy is robust with immense potential. Being one of the fastest growing economy, India has made its presence felt in the international market. The rise in household incomes have increased the overall consumer spending, making the country a lucrative destination for overseas investors. And quite generally, these overseas investors won’t budge into an area without examining the opportunities that come with it.

With relaxed FDI guidelines, real estate focused government initiatives, and growing market, the Indian real estate holds a vast opportunity for investors seeking to enter in Indian property sector, says Cushman & Wakefield India survey. Industry experts at Modi Builders believe that if the changing government policies are favorable, the earning growth increase at The Compound Annual Growth Rate (CAGR) will help India transform itself as a prospect market for investors.

The Foreign Direct Investment (FDI) policy earlier limited the role of foreign investors to large sized projects (with the development size of over 0.54 million sq. ft.). But, after consequent liberalization of the policies, both completed as well as under construction projects were placed within the reach of overseas investors. That said, both residential and commercial properties are expected to see a possible side-up in terms of investments. The overall private equity (PE) investment from foreign funds has increased in its volume over the recent years.

Several countries are looking to set their real estate footprint in India. In 2015, 34% of the total FDI in India was brought in via Mauritius, owing to bilateral tax avoidance treaty with India. Currently, Middle Eastern countries are crossing their hedgerow to invest in Indian real estate. “Saudi Arabia wants India to open up its real estate sector to foreign ownership, which will lead to investments of hundreds of millions of dollars in residential and commercial properties,” according to Kamil S Al-Munajjed, chairman of Saudi India Business Council.


With FDI guidelines in place, the ease of doing business in India, and the demographic strong-arm of multiple countries in terms of its workforce has made India stand as a top market to attract foreign investors, state real estate experts at Modi Builders. Provided that the foreign developers are able to target the right segment of audience and implement themselves judiciously, the market holds serious potential to turn out hefty and interesting rewards for the investors.

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