Real Estate Investments Surges 85% Growth in India this Year 2017

In the first 9 months, India has seen upsurge of 85% in real estate investments in 2017, when compared to the last year with record high deal volume of US$2.6 billion, while it was $1.4 during the same period last year, according to a report of Low Real Rates, High Growth, and Black Swans from Colliers International. Even though India’s property investment remains modest when it comes to the importance and size of the country, this growth shows that India is growing maturely
being a market for investment.

Suresh Castellino, Executive National Director, Colliers International India, who belongs to Investment Services and Capital Markets, added, “That rise in investment shows that India is maturing with the potential to create high value for investors. There is significant growth potential of India in industrial, commercial, and warehousing. In these sectors, most of such capitals have been invested.” When considering the investment markets in terms of country, Japan has always been the top in terms of real estate investment, especially in income-generating ones, as on September 2017. But total property transactions fell by 12% in Japan year on year to US$23.3 bn. It is ranked just ahead to China with US$22.3 billion of transactions.

On this list, Australia was ranked third with 19% of drop in transactions to just US$15.2 billion. When it comes to this lackluster role in these markets, Hong Kong was placed fourth with 38% hike with US$14.7 billion in real estate transactions. With 33% hike in real estate transactions, South Korea followed Hong Kong, while deal volumes raised by 83% to US$8.7 billion in Singapore.
India’s economic performance has been turning down a bit when comparing other parts of Asia, according to the Colliers Research. But India recorded 515% hike in deal volume in third quarter of 2017, to US$1.2 billion, despite low base to compare.

According to the report, India has higher rates of interest than other countries. After the repo rate cut by the Reserve Bank of India, the benchmark rates of interests have cut to 6.4%. A lot of economic pundits are expecting the RBI to keep rates of interest unchanged in few months to come, despite few of the rate cuts.