India is at the 19th position among 73 countries in terms of attracting cross-border capital into their respective property markets last year, with inflows touching USD 2.6 billion, says a report. The bulk of the inflows came from the US, Canada and Singapore, according to property consultant Knight Frank. “India ranks an impressive 19th position amongst the 73 countries that attracted cross-border capital into their property markets in 2017. “With USD 2.6 billion of cross-border capital inflows (excluding development sites), India ranks ahead of its Asia Pacific regional counterparts like Malaysia, Thailand, Indonesia, Vietnam and Philippines, which collectively attracted lesser capital flows compared to India,” the consultant said in a statement.
Knight Frank also said the capital flows into Indian property market have been 10 times higher than the outflows in 2017. Last year, the outflows stood at USD 0.26 billion. The huge inflow was mainly on account of reforms like new realty law RERA, the GST and demonetisation.
“Compared to 86 per cent share in 2016, United States, Canada and Singapore collectively contributed to 84 per cent of capital inflows to Indian property followed by United Kingdom, United Arab Emirates and Hong Kong in 2017,” the consultant said. Knight Frank India CMD Shishir Baijal said, “cross-border capital inflows (excluding development sites) to India stood at USD 2.6 billion in 2017 recording a 31 per cent growth over 2016”.
The changes in business environment brought by landmark reforms like the RERA and the GST as well as the government’s focus on affordable housing infused confidence among the stakeholders of the Indian property market, he added.