NEW DELHI: Foreign investment into the Indian real estate sector stood at $2.6 billion in 2017, a Knight Frank report said here on Monday.
According to Knight Frank Indias Chairman and MD, Shishir Baijal, the inflow of foreign capital into the segment registered a 31 per cent growth on a year-on-year basis in 2017.
"Cross-border capital inflows (excluding development sites) to India stood at $2.6 billion in 2017 recording a 31 per cent growth over 2016.
"Ranking an impressive 19th position amongst 73 countries that attracted cross-border capital into their property market, India has surged ahead of its Asia Pacific regional counterparts which collectively attracted lesser capital flows compared to India," Baijal added.
Foreign investments into Indian real estate was higher than collective foreign investments in the other Asia Pacific countries of Malaysia, Thailand, Indonesia, Vietnam and Philippines, said Knight Frank's "Active Capital: The Report 2018".
The report further observed that due to reform measures including the Real Estate Regulatory Act (RERA), Goods and Services Tax and demonetisation, "the attractiveness of Indian real estate potential has caught the fancy of international investors and developers alike resulting into this favourable investment account".
Capital flow into Indian property market was 10 times higher than the outflow in 2017, it said, adding that "$2.6 billion of inflow was recorded compared to outbound capital flows to the tune of $0.26 billion last year".