Debt and equity investments together increased by 62% (y-o-y); stood at INR 38,000 Cr in 2016
Shobhit Agarwal, Managing Director– Capital Markets & International Director, JLL India
In 2016, equity investment was seen on a return journey to India. After the change in its regulatory framework, the country is now looking way more attractive to investors – both foreign and domestic – than ever before. Thanks to an improvement in India’s rankings on different indices and a pro-active government keen on improving these further, the country is bound to attract more equity investment.
In 2016, the private equity inflows into Indian real estate showed a 62% increase (y-o-y). The total inflows last year stood at INR 38,000 crore compared to the 2015 figure of INR 23,500 crore. Out of the entire sum, INR 13,500 crore was investment via pure equity while the rest was via different structures of debt. Even in terms of pure equity, 2016 saw an impressive increase of 29% (y-o-y).
Interestingly, when only the 2H of 2016 is compared to the 2H of 2015, there has been a 121% increase in the former over the latter. This was due to increased confidence shown by investors post the Parliament’s passage of RERA [Real Estate (Regulation & Development) Bill] and GST.
Though the historic high of 2007 (in terms of total PE inflows) was not breached, last year proved to be the second-best year so far. This year may even turn out to be slightly better than 2016 – despite BREXIT and the outcome of US presidential elections – thanks to a strengthening and modernising economy and India’s growing reputation as an attractive investment destination.
Economic and political stability, liberalisation of the FDI policy by the Modi government and the resultant improvement in the investor community’s sentiment are some of the factors working in Indian real estate’s favour. All eyes on 2017!
Your email address will not be published. Required fields are marked *
Notify me of follow-up comments by email.
Notify me of new posts by email.
Sign me up for the newsletter!
Piramal Glass Transforms its Manufacturing Operations with Microsoft Azure IoT
Sands Resorts Macao Launches Winter Extravaganza Programme to Celebrate the Festive Season
MobiKwik launches Digital insurance: Targets 1.5 million policies by end of FY 2018-19
Porsche 911 GT3 sets lap record at Buddh International Circuit
Tata Chemicals Launches ‘Ncourage Social Enterprise Foundation’
2014 The Global Indian New Network (TGINN)