New Delhi: Real estate sector in India will get USD 50 billion in the current calendar year as institutional investment, said JLL in a report. This will include both domestic as well as foreign investment, it said,
The funds flow to the realty sector will be due to relaxation in FDI related norms and institutionalisation of investments in completed projects by way of Real Estate Investment Trusts (REITs) has made the investment scenario more congenial.
“India real estate has gradually transformed into a global investment destination. Above all, like other developed countries, India not just regularised the real estate sector but also brought in a law to institutionalise investments in ready commercial assets through REIT rules,” said Ramesh Nair, CEO & Country Head — India, JLL.
As far as REITS are concerned, about USD 35 billion can be raised by the developers and REIT operators in the near term. About 294 million sq ft of office stock would be eligible for REIT.