Due to an opening up of foreign direct investment (FDI), the Indian real estate market has witnessed a significant chance in the last decade and high preference to the high rises over traditional low rise structure, as per the report by property consultant CBRE.
Report by CBRE titled “Inflection Point”; ten years of organized real estate in India (2005-2014), says FDI in 2005 initiated the entry of new avenues for funding and capital inflow witnessed a spine.
Till 2004, restrictive legislation provided a narrow range of funds for the sector, though after opening up of the sector to FDI in 2005 opened new avenues for investment, it said.
According to the report, capital inflows witnessed a spike, especially in 2007 and 2008 when private equity investment was close to $14 billion.
And India’s housing landscape shifted form largely independent low rise plotted development into a high-rise apartment complex, especially to meet the demand of the home seekers.
Office space formed the mainstay of the evolution of the organized real estate sector in the country, which has moved from traditional central business districts of the foremost cities across India.
And over 90 million sq.ft in 2005 to more than 400 million sq ft in 2014 and office stock has seen a wide change in terms of structure and spread backed by the private sector as well as intervention by the government.
And retail sector has also witnessed massive changes over the last decade.
“The period was marked by the rising popularity of malls, among shoppers and retailers, against the turn down of foremost high streets, and going ahead, technology and e-commerce will co-exist along with mall and high streets in a comprehensive retail real estate eco-system,”Mr magazine said
