The phenomenal growth in real estate investment in India is attracting global attention. With a whopping 140% increase in real estate investment to $5 billion in 2014, according to Cushman & Wakefield, India was among the world's top three countries for increased investment.
"Increased investment" is a slightly odd category. Countries which topped the list, had mostly previously crashed. Serbia was No 1 with a 610% increase in real estate investments in 2014, Bulgaria came second with a 186.5% rise in investments.
Yet India's appearance on the list heralds not recovery after a crisis, but a real transformation. Overseas buyers in India invested $1.93 billion in properties in 2014, an increase of nearly 38%. Domestic buyers purchased properties worth $3.12 billion, a 62% growth.
"The huge growth in investment volumes in real estate markets are proof that investors are already acting out on their expectations of improvements in the ease of doing business in India backed by regulatory reforms to be implemented by the Prime Minister Narendra Modi led government," said Sanjay Dutt, executive managing director, south Asia at Cushman & Wakefield.
The residential sector received more investment than the commercial sector, with investors purchased residential properties worth nearly $2.6 billion.