Asian Investments Shifting the Tide in Global Real Estate

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By Accommodation Times Bureau

NEW DELHI

The global real-estate found Asian investments at the top of the heap the previous year and according to recent reports, is all set to continue its supremacy well into this year. In 2018, the Asian investments stacked up more than a half of a record USD 1.62 trillion of the capital invested into global real-estate, Adhum Carter Wolde-Lulu, a partner at Eyas said.

Eyas.ch raised an impressive 40 million pounds for the Asian real-estate market alone. The Asian buyers made up 46 per cent of all overseas investments. Adhum added, “The real takeaway is that the global economy is seeing a boost in activity because of Asian markets. The frequency of Asian real-estate projects and quantum of funding involved shows that these numbers are likely to go up in the coming years.

The challenge will be to sustain this momentum and not get tangled up in trade wars with western countries, he said. The trend for real-estate in the year 2018 will be more towards refinancing, recapitalization and multi-channel entity level deals instead of single-asset acquisitions. Although the developed nations of Singapore, China, and Japan still dominate, the new markets are attracting a host of mid-segment buyers because of multiple entry points and short to long-term gains.

In India, policies such as GST and RERA proved to be game-changers as India’s Tier 1 cities are expected to move up from their current 36th rank in JLL’s 2018 Global Real-estate Transparency Index because of strong improvements in structural reforms, implementation of RERA and GST.

India is likely to become significantly more influential in Asia-Pacific in the next five years. According to reports, 90 per cent of 150 Asia Pacific based business leaders expect the number of cross-border transactions involving Indian firms’ to soar because of 100% FDI eligibility in the real-estate sector.

The investment volume in India is forecasted to reach $611 billion, up from 4.8 billion last year. The investments in India’s six largest property markets have increased by 100%. Mumbai seems to be a favourite, attracting $1.75 billion, ranking 81st the world over. 2017 saw several high profile investments in India, like Singapore’s GIC purchasing a 33 percent stake in a unit of DLF Cyber City for US$1.4 billion along with Allianz’s real-estate arm announcing its partnership with India’s ShapoorjiPallonji Group to establish a fund of US$500 million to target India’s office market, according to a report.

With India’s office and retail sectors looking ripe and promising, 2018 will see many institutional players making a strategic entry into India for long-term economic growth. India with its rich and abundant real-estate opportunities and 100% foreign direct investment is of key interest to Eyas and they plan on making huge investment strides in the region in the near future.





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