India's housing sector has always been a favorite amongst domestic investors. As an asset, housing has enjoyed high capital growth backed by high demand in major Indian cities, according to Business Standard.
Besides, easy leverage and recurring rental income further piqued investor interest in the housing sector. However, post the 2014 market slowdown, real estate, which once attracted investment by volumes as high as 40 per cent, saw a gradual dwindling in investor interest.
But, by the end of 2017, the markets started to recover, instilling end-user confidence and stabilisation of property prices in most markets. The bounce-back was eventually followed by expansion in investor activity. As per our recent quarterly consumer sentiment survey, investment activities in five major Indian cities (Mumbai, Gurugram, Noida, Pune and Bengaluru) currently account for around 24 per cent of the market. This is a notable improvement from the previous quarter's 17 per cent.
The spurt can be attributed to three factors -- anticipated property price growth in major Indian cities, high buyer confidence and availability of light-weight investments.
Investors regain interest as India's housing sees market
FE Team | Published: January 07, 2019 00:16:54
Investors regain interest as India's housing sees market
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