SME Times News Bureau | 27 Jul, 2019
Sanjay Dutt, Chairman, FICCI Real Estate Committee, and MD and
CEO, Tata Realty and Infrastructure Ltd today said that the Indian real
estate sector has started reviving and the first half of the year has already
seen $2.7 billion investment.
Speaking
at the 'Conference on Real Estate Financing', organised by FICCI,
Dutt said that the Indian real estate sector is in a state of nirvana with
revolutionary reforms playing charm to attract investments and restore
confidence in the sector.
"2019
has started on a positive note with about $2.7 billion of real estate
investments recorded in the first half of the year in various asset classes
across the country. Improvement in infrastructure, roads, and metros coupled
with the increased speed of technology implementation (e.g. 5G) will be
impactful game changers for the sector and will improve the investor interest
in the sector," Dutt said.
The
launch of India's first Real Estate Investment Trust (REIT) is another positive
move for the sector further building confidence amongst global real estate
investors to invest in India, he noted.
"The
majority of the funds and private equities are investing in commercial and
warehousing spaces and top 40-50 million square feet of space is getting
absorbed in major cities of India," he added.
Niranjan Hiranandani, Chairman & MD, Hiranandani Group said, "Liquidity,
low cost housing and leveraging new ideas will bring a paradigm shift to the
Indian real estate sector. The real estate sector in the country is likely to
grow by 35%-40% in the next couple of years."
He
further said that the new concepts like co-working, co-living will be the new
face of real estate industry. However, he added that the NBFC issues need to be
solved and liquidity needs to be improved as lack of liquidity is delaying
consumer decisions despite demand.
Raj Menda, Co-Chair, FICCI Real Estate Committee and Corporate Chairman,
RMZ Corp said, "Absorption by IT/ITeS has been the primary driver of the
commercial absorption and new concepts like co-working and co-living will bring
in more investments in the sector."
Shrinivas Rao, CEO, APAC, Vestian said, "A
robust and well catered real estate sector assists in strengthening a host of
other ancillary sectors and is significant for a growth economy such as ours.
One of the major trends observed in the last decade has been the rise in
institutional investment in real estate, particularly PE investment that has
been a key factor in keeping the market confident about its revival."