Stronger regulations, deleveraging by listed developers and the advent of real estate investment trusts (REITs) seems to have prompted Banks to shake-off their conservative approach towards lending to the Commercial Real Estate (CRE) sector. Furthermore, the introduction of REITs has provided a structured and secure avenue for banks to engage with the real estate sector, mitigating some of the inherent risks. Global institutional investors have consistently infused an average of $4 billion annually in the Indian real estate sector over the last five years, according to property consultant Colliers. Leading APAC countries such as Singapore, Hong Kong, South Korea, and Japan are also gradually eyeing India’s growing real estate market. Keeping up the momentum in Q1 of 2024, institutional investments into real estate touched $1 billion, with office sector’s share at 57 per cent.

Source: The Hindu May 05, 2024 16:48 UTC