India – A Hot Favorite for Cross-Border Investments

Thursday, January 25, 2007

In a survey conducted by the Association of Foreign
Investors in Real Estate, (AFIRE)
based in Madison, USA,
India has emerged as the country with the second highest potential
for real estate capital appreciation. Climbing four notches up from
sixth place in 2005, it threatens number one on the list, the USA,
and has narrowed the margin between first and second spot by 5%.

As per the AFIRE report, international investors will continue
to widen the distribution of their funds across more countries and
initiate new strategies to acquire real estate in the most competitive
markets. While the US remains the leading market for investment,
India ranked highly as a place for wealth appreciation.

18% of survey respondents say real estate in India provides the
second best opportunity globally for capital appreciation. With
15% of survey respondents’ votes, real estate in China continues
to rank third.

The survey indicates cross-border investment in realty to the tune
of $500 million dollars in 2007. Indian real estate again figures
as a favorite for foreign investors, ranking third – moving up from
fifth position in 2005, after Japan and China. Singapore and Hongkong
trail behind to tie for fourth place.

Globally, commercial spaces will be the first choice of investors
in 2007 forecasts the AFIRE report, with retail space constituting
a high 22% of the total.

The Association of Foreign Investors in Real Estate is
a non-profit association for the foreign real
estate investment community. 200 AFIRE members from
17 countries share a common interest in studying and promoting international
real estate investments. AFIRE is a meeting ground for investors
to exchange knowledge and information at regular meetings in the
USA and Europe.

Photo: Stock-exchange-trading-floor by S.aderogba, licensed under CC BY-SA 4.0, via Wikimedia Commons.