India’s Expanding Horizon

Written by Isabella Toledo

India's real estate market is quickly establishing itself as a premier destination for foreign investors, offering a unique combination of high growth potential as well as solid returns. With a rapidly expanding economy, accelerated urbanisation, and a growing middle class, the country presents a standout opportunity for global players seeking long-term investments.

This appeal is evident, with India attracting nearly USD 3.5 billion in foreign capital in the first half of 2024, making it the third most favoured global market for land and development investments, according to international property consultancy Colliers.

Over the past two decades, the market has undergone distinct phases of transformation. From 2004 to 2012, many global players entered at the market's peak, only to encounter challenges during the global financial crisis and rising interest rates, which prompted premature exits. 

However, those who maintained their positions from 2014 onwards have enjoyed substantial rewards as the market shifted toward embracing global standards and improving the quality of developments. This transformation has resulted in the country's real estate market becoming increasingly attractive to international investors.

Today, the market is characterised by improved governance, adherence to global standards, and a more transparent regulatory framework, making it easier for foreign investors to navigate entry and exit strategies.

The latest GRI Club India report presents key insights from the "India’s Expanding Horizon" session that was held at Europe GRI 2024, the premier gathering for the European real estate sector that brought together nearly 800 senior executives and C-level professionals.

In line with GRI Club’s commitment to fostering global investment in India, the session explored opportunities in the country’s real estate market, focusing on the effects of market consolidation, government reforms, emerging asset classes, and the current financing challenges and opportunities.

Read the key insights from the session here.