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Time To Buy?

With the Indian economy looking up, analysts predict a revival for the real estate sector too

12/31/2014 12:01:37 PM
written By : Staff Reporter Print

The New Year is likely to bode well for the Indian property market. Aftera lackluster 2014, the first signs of revival were when Singapore’s sovereign wealth fund, GIC Pte Ltd, decided to invest around $200 million in Bombay-based realty firm Nirlon Ltd. 

This was its second investment in the country. During the middle of December 2014, it had entered into a joint venture with another developer, Vatika Group, for two residential projects in the suburbs of Delhi. “GIC is confident of India’s growth potential over the long term,” said Loh Wai Keong, co-head Asia at GIC Real Estate, in an official statement, which only highlights the potential of the Indian property market.

Apart from GIC, other major funds such as Dutch pension-fund asset-manager APG Asset Management NV and the Canada Pension Plan Investment Board have also committed to investments. In 2014, global funds invested around $1.13 billion across 45 deals in the real estate sector, compared with $756.74 million in 46 transactions in 2013.

In an industry report, Anuj Puri, Chairman and Country Head, Jones Lang LaSalle said, “The year 2014 has been quite fruitful for the real estate sector in terms of business sentiment, although the real effect of many of the policies and amendments announced in 2014 will take effect only in 2015.”

“Starting from Union Budget FY2014-15, where affordable housing was considered on par with infrastructure, to relaxation of rigidities in the Land Acquisition and Real Estate Regulatory Bill, India’s new Prime Minister has been offering the India real estate sector consistent doses of energy,” he added. 

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