Foreign investments are still pouring into the real estate market even as the sector fights the effects of the pandemic. What’s fascinating is that growth in the real estate market is set to go upwards only.

A new trend involves private equity investors focusing solely on deals that build up their portfolio. The investments made by such investors are not limited to specific locations or projects but involve a cross-location investment pattern since last year. PE deals increased by 62% in 2020 and even more in FY21.

This is the result of REIT listings and a dropped price of properties. Investors expect good rental value on their investments, not immediately but in the future.

The effect of the pandemic on the real estate builders has mostly been negative but investors have opportunities in front of them. A large number of investors have already realized the potential profit, which shows in the current investment pattern in the real estate sector.

“Foreign funds are evidently very upbeat about India. High-grade rental-generating assets have attracted foreign investors in a big way during the year. Moreover, India has a strong underlying demand for office space with quality workforce and average rentals available at less than a dollar per sq ft per month,” says Shobhit Agarwal, MD & CEO – ANAROCK Capital.

In fact, many businesses are buying commercial office spaces at premium locations for the purpose of using or reselling in the future, expecting a considerable profit margin. Locations such as Gurugram and Noida are the top preferences when it comes to getting office spaces. Recently, Gurugram is also undergoing an awaited transformation, which is going to attract even more premium investors.

In conclusion, the set trend is only going to rise and NRI, as well as foreign income, is expected to grow in the near future.