Opportunities for foreign investors in Indian real estate

Somy Thomas

Somy Thomas

Managing Director – Consulting and Valuation & Advisory

Phone +91 80 4046-5555

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The full report

The foreign direct investments (FDI) norms in India have been relaxed to allow foreign entities to investment in the entire real estate stock of completed or under construction projects. The structured debt strategy has further allowed PE to invest in real estate that offers assured and secured returns to its investors. The total private equity investment in India therefore grew by 59% year on year in 2015 whereas investments from foreign based investors increased by 33% in 2015 compared to the previous year. At the end of 2015, the Grade A office market is estimated to have investment potential between USD 54bn to 67bn that can generate rental income of USD 5.4bn. The residential market further has potential to invest in over 900,000 under construction units.