Rama Krishna Sangem
Indian real estate is attracting global investments. Many big ticket deals are pouring in into this sector for the last few months, especially after consolidation of REITs. A significant recent example is Brookfield Asset Management’s planned investment of over $10 billion in India’s real estate sector over the next three to five years.
The company’s aim is to double its assets under management by diversifying across residential, industrial, and retail segments. This amount is also a record high for equity investments in the Indian real estate sector for 2024, with domestic developers and institutional investors making large contributions.
Brookfield’s strategy in India:
Scale: Over $10 billion into the Indian real estate market in the next 3-5 years. Goal: To double its real estate assets under management (AUM) in India. Market: India’s rapidly growing real estate market. Segments: Diversification into residential, industrial, and retail sectors. Interestingly, expansion of GCCs is a new phenomena.
Approach: Holistic asset management and strategic partnerships. Broader Trends in Real Estate Investment Record Equity Inflows: The total equity investment in India’s real estate sector in 2024 is projected to surpass $10 billion.
Domestic Dominance: Domestic investors, particularly developers, have been the largest capital contributors. Regulatory Support: New frameworks like the SEBI SM REIT framework are expected to enhance transparency and institutional participation, especially in tier-II markets.
Growth Drivers: An increasingly advanced economy and untapped potential in India’s real estate landscape are fueling this investment growth.
Infra push of Modi government
Though there are many reasons for this boom in real estate investments, one of them is the Modi government’s big push for infrastructure expansion in the coming years. The rising in Capex or capital expenditure in the union budgets is there for us all to see. The foreign investors are aware of the opportunities in the real estate sector in India.