Listen To The Article
Renowned developers and foreign funds focused on Delhi-NCR and Mumbai to invest in land acquisition throughout 2018–2022, as over 60% of the fund was used in these two major cities, according to an analysis conducted by property consultancy firm CBRE.
Delhi-NCR attracts approx. 3.8 billion to acquire 1760 acres of land spread across 67 deals, while Mumbai witnesses 73 deals to acquire 960 acres for the same amount.
DLF has finished its first private sale transaction, following its initial sale of office space to remarkable individuals within the country and subsequent choice to cease such sales and focus on building a rental collection.
Bangalore and Hyderabad received 9% and 7%, respectively, of the total investments made in land purchases.
Anshuman Magazine, Chairman & CEO for India, South-East Asia, the Middle East, and Africa, claimed that 2022 will be a turning point for land development and that it will show the kind of long-term bets that investors are willing to place on the Indian RE market.
More than 6,800 acres of property were bought between 2018 and 22. There has been a considerable surge in activity over the past two years, with the beginning of January 2021 seeing the purchase of about 60% of the land.
According to CBRE, the residential sector has experienced the highest growth, making up more than 37% of the land purchases made since 2018. By purchasing nearly 900 acres for residential projects, developers have upped their game even more, accounting for 43% of all land purchases in 2022.
Another well-known industry that experienced growth was insurance and reinsurance (I&R), particularly in the pandemic years (2020 and 2021). This sector accounted for around one-fourth of the land purchases between 2018 and 22. According to the study, the RE sector received a total of $43.3 billion in investments between 2018 and 2022.
Equity investments totaled $31.8 billion during this time, compared to debt investments of $11.5 billion. Foreign investors, largely located in North America and Singapore, invested more than $ 18 billion in equity in real estate in 2016, making up 58% of total equity investments.
Source-ET
