India ranks 20th among the top real estate investment markets of the globe, reported Cushman & Wakefield. With $ 304.1 billion of investment value, China stood top.
MUMBAI: As per the latest report of the global real estate consultant Cushman & Wakefield, India is ranked 20th among the top real estate investment markets of the globe. International Investment Atlas, the latest report of C&W, global real estate investment market saw a 6% rise in the investment activities last year.
In the last quarter witnessed more volume of investment. It signals revival of real estate investment. With the revival taking place, the investment in 2013 is believed to grow by 14%.
China tops the list. $304.1 billion was invested here. USA stood second with investment value of 267.1 billion. Both China and USA hold the lion’s share of the entire real estate investment. These two remained the top real estate investment markets of the world.
UK ($56.3 billion), Germany ($45.6 billion) and Japan ($34.7 billion) respectively reached third, fourth and fifth positions.
India received INR 190 billion ($ 3.4 billion) of investment last year. Majority of the investment was done in the form of institutional sales. Private equity investments shared the rest.
There was a slight increase in the PE investment last year. It increased by 7%. While on the other side, institutional sales declined by 37%.
Most of the Private Equity in Real Estate (PERE) funds was invested in operational and income-generating commercial projects. Pre-launch residential projects saw the highest number of PERE investments. Nearly 25 such deals were reported.
Cushman & Wakefield’s Executive Managing Director for South Asia Sanjay Dutt said that the investment in the commercial sector is less risky. He added that further this permits steady flow of income. Mr. Dutt said that the commercial investment is becoming more attractive now a day.
While pre-launch residential projects received INR 28.5 billion from PERE funds in 2012, commercial sector received INR 32.3 billion. This is an increase by 34% over the previous year.