India Realty Space to See $4-5 Billion Foreign Inflows in Two Years

Right now, many Indian developers and fund managers are seeking to get international money and that is much more likely to come in, Hughes said, adding that there is more international money today waiting to be invested in India than any of the last five years.
Overseas investors have invested $14 billion into the Indian real estate sector over the period from 2006 to 2012.
In the last two years, foreign investment into Indian real estate has been around $1.2 billion per annum.
Around half of all transactions were invested in residential property, a quarter in the offices sector and the remaining quarter was split among the other sectors.
Regionally, half these investment come from US with rest coming from the Middle East, Singapore, the UK, Hong Kong and Germany, Hughes said.
Terming the next two years as much more promising, Hughes said that 2013 and 2014 will have a total of $4-5 billion come into the sector, mainly to buy income yielding SEZ assets at a capitalisation rate of 10.75 per cent.
"We expect interest from global and U.S. investors to maintain. Favourite location foreigners will be Bangalore, New Delhi and Mumbai," he added.

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