As per data from the Department of Industrial Policy and Promotion, FDI in construction development stood at Rs 2,453 crore ($385 million) in April-December 2017—up 250 percent from Rs 703 crore ($105 million) in the year ago-period. data covers townships, housing, and built-up infrastructure.
Measures like RERA, GST, demonetization, and crackdown on benami property (or property held via proxy) are some of the measures that are behind the revival. There may have been short-term negative effects however they have motivated the inflow of foreign funding.
A report by Cushman and Wakefield, real estate services firm suggested the whole sector got investments worth Rs 30,000 crore, including from domestic and overseas investors, through the year to March.
The fresh investment has gone into the commercial real estate and infrastructure. Highlighting a rise in private equity inflows into the property market, the Cushman and Wakefield report said India’s buoyant office sector continues to attract heightened interest from foreign investors who are building a portfolio of rent-yielding assets. Thus, changing the ownership pattern of office stock in major cities.
The report mentioned that private equity investments in the sector for the quarter ended March were Rs 8,500 crore ($1.3 billion). Anshul Jain, country head and managing director, Cushman and Wakefield India said that investors from China, Japan and US have joined with domestic developers to enter the Indian realty market. This includes investors like Blackstone, GIC, Brookfield Asset Management and the Canadian Pension Plan Investment Board.