31 December , 2021 Fdiindia
Institutional Investments in the Real Estate Segment a Positive Sign: Bansal
The Indian construction industry is currently the third largest sector in terms of foreign direct investment (FDI) inflow in India. A report by the Department for Promotion of Industry and Internal Trade (DPIIT) mentions that the sector saw a foreign investment of $51.5 billion during April 2020 and June 2021.
Pankaj Bansal, Director of India’s leading real estate developer, M3M India, is optimistic about the recovery of the realty segment after the COVID-19 slowdown.
“The retail segment has been on the investors' radar as it is providing great investment opportunities to a wider spectrum of small to large investors. As part of NCR, Gurugram seems to be leading the retail sector. M3M India itself is today the largest developer of retail space in North India by delivering over 4 million square feet of retail space in one of the most promising growth areas of Gurugram,” he said.
“Overall, the Company has delivered a staggering 20 million square feet of realty space. The DPIIT report on the flow of FDI in the construction sector and the interest of institutional investors in real estate is very encouraging. This I believe will make the business more competitive, delivering better value to buyers and investors,” Bansal added.
In 2020, the Indian real estate sector witnessed $5 billion in institutional investments. This was equal to 93% of the transactions in the previous year. Private equity saw an approximate investment of $3.24 billion in the fourth quarter of FY 2021.
“We are now eagerly awaiting Union Budget and expecting a dynamic favorable policy, for not just retail, but also for the housing sector. As the entire sector is focused on contributing at least 13% to India's GDP by 2025 and reaching a market size of USD 1 trillion, I am sure the Government must also be looking to present a few essential concessions and relaxations in the Union Budget 2022,” added Pankaj Bansal.
“The ambitious 100 smart cities project by Government of India is not only going to be a great opportunity for the real estate sector, but it will also pave the way for many world-class developments in key emerging markets, by capable real estate developers who are exploring 'smart' and new age innovations to bring in new ways of living habitats,” he further stated.