ALL ROADS LEAD TO INDIA…
The foreign institutional inflows into real estate rose three-fold to $26.6 billion between 2017 and 2022 as compared to the preceding six-year period, a Colliers India report highlighted. Foreign institutions accounted for 81% of the total investment in real estate between 2017 and 2022. In the quarter that ended March 31, the institutional investments in the real estate sector were up 37% to $1.7 billion.
The optimistic news for the country comes on the back of highly favourable demographic indicators, forward-looking government policies, fast-shaping infrastructure advancements and competitive costs. Despite global headwinds, India is perhaps one of the few countries showing remarkable resilience in withstanding external complexities and emerge stronger than ever. The country’s strong fundamentals and a buoyed economic growth momentum have been the decisive factors in luring investors’ attention lately.
Union Minister of Commerce and Industry, Piyush Goyal, reiterated this stance during a recent CREDAI event, “India is set to become the third largest construction market in the next two-three years. Indian real estate sector has been a critical engine of India’s growth story, providing large-scale employment and the sector has shown immense resilience in the last few years with the active support of the government.”
Taking the infrastructural growth roadmap forward, rating agency ICRA predicts a 16–21% increase in road execution activity in FY2024 to 12,000–12,500 km, owing to a healthy pipeline of projects, increased government capital outlay, and a focus on project completions ahead of the general elections. The project pipeline remains strong at 55,000 km under various stages of execution.
In another fascinating development, Ministry of Road Transport & Highways recently informed that the country has achieved a historic milestone by completing a 100-kilometer section of the Ghaziabad-Aligarh Expressway using bituminous concrete in just 100 hours.
These buzzing developmental activities are a testament to our country’s grit in creating sound infrastructure benchmarks, which will prove to be the FOUNDATIONAL PILLARS in achieving $5 trillion economy in the slated timeframe.
With the year 2023 almost half-way through, the construction industry and allied segments have the onus to capture this highly promising landscape by delivering projects as promised and bringing in innovations in technology, materials, and processes.
‘Collaborate to Succeed’ should be the mantra to excel and move forward in this RACE against TIME!