Foreign investment in real estate down 20%
While global institutional investors’ interest in Indian real estate continues to show an uptick, the latest June quarter has shown a decline in their investment owing to delayed conclusion of a few large deals. Indian real estate has attracted investments worth $1.08 billion in the June quarter across 11 transactions, down 20% from a year ago, showed data from Venture Intelligence.
However, given the size and number of deals that are under negotiation, the interest remains intact, experts said.
“A few mega deals that are under discussion have not fructified in the latest quarter and their closing should reflect in the upcoming quarter. These are large and complex transactions and therefore are taking time to conclude. Global investors’, especially Singapore and Canada entities, remain aggressive to pick up marquee assets in India,” said Arun Natarajan, founder of research firm Venture Intelligence. The commercial market dominated both in terms of volume and value in the second quarter of the year as 7 transactions worth $766 million were announced in this segment. The residential segment attracted investments worth $34m.