India will attract significant capital from Singapore, China, the UK and the US, CBRE’s CEO, Asia Pacific, Steve Swerdlow said, adding that with greater transparency in the market, this is the beginning of their new journey in India. “Traditionally, Japan and Australia were important markets for CBRE, but India and China will overtake them in the next few years,” Swerdlow said.
For CBRE, Asia Pacific is the fastest-growing region and within this market, India is playing an important role, Swerdlow said.
CBRE Group is the world’s largest commercial real estate services and investment firm.
Anshuman Magazine, CBRE chairman, India & South East Asia, said traditionally investors from Japan and Singapore went to China, but now even China is looking closely at India, and this year a few investors from China are going to come to India in the real estate and infrastructure areas.
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The flow of international capital coming to emerging markets has slowed down and India is competing with China, Indonesia and the Philippines. Flow of money to India will increase as they want to put in money where there is growth and India can provide that long-term growth for foreign funds, Magazine said. CBRE last year raised Rs 4,000 crore for developers and this was not just from FDI, but also from domestic institutions which had money with them but were not investing in the real estate segment in India. But now domestic money was coming into the Indian real estate market, he said.
Magazine said they are seeing an early sign of recovery across the country, especially with the push for affordable housing in the Budget. “There will be a big revival in the affordable side where demand is the highest. In the past there was some resistance among developers to look at the affordable segment, but in the remaining part of the year there will be a revival,” he said.
All the developers are looking to add the affordable housing segment in their portfolio and investor appetite for the affordable segment is growing, he added.
Swerdlow, who was in Pune recently to open a property fair, said Pune was among the rare cities in the Asia Pacific region where the property market was responding to demand rather than pushing supply into the market.