CBRE Report Puts Spotlight on India’s Real Estate


CBRE Report Puts Spotlight on India’s Real Estate :

A report from CBRE India – titled ‘Inflection Point: Ten years of organised real estate in India (2005-2014)’, says that India’s opening up of FDI in real estate has resulted in a considerable change in the India’s real estate map. As per the report, the capital inflows into the India’s real estate sector saw a major hike, especially in the year 2007 and 2008 when private equity investment touched the $14 billion mark.

The report further states that this easing out of the availability of FDI in India’s real estate circles has also resulted in a shift in preference to high-rise buildings, over traditional low-rise real estate infrastructure.

It may be recalled that the opening up of the real estate sector to FDI was a landmark decision by the government in the year 2005 that has initiated the entry of new avenues for funding, and capital inflow in India’s real estate circles.

The report has also illustrated that the restrictive legislations imposed till the year 2004, encouraged limited scope of foreign funds for the sector. However, things changed dramatically, when the sector was opened up to FDI in the year 2005 and as a result, there were many new real estate related avenues that opened up soon after the opening of the sector.

This report by CBRE also states that with the opening up of FDI in real estate, India’s housing landscape shifted from largely independent low-rise real estate development, to high-rise apartment complexes that are much more compatible with global standards. This has also resulted in meeting the ever growing demand for homes in India.