Forbes India 15th Anniversary Special

It Is Time for Americans to Invest in Indian Real Estate Sector: Mo Abboud

Mo Abboud said realty in India is attracting both the Private Equities (PE) and Institutional Investments (II)

Published: Nov 18, 2020 04:55:10 PM IST

The Indian real estate industry, currently on a healthy growth trajectory, is likely to offer a good market for investment for the Americans as its organic growth can be foretold due to the ongoing trend of expansions.

According to Mo Abboud, a realtor, the Indian realty segment is clocked for positive growth as it attracted US$ 6.26 billion in investment in 2019.

Explaining this positive investment trend, Mo Abboud said realty in India is attracting both the Private Equities (PE) and Institutional Investments (II) following fast urbanization, high demand for residential and office premises across India.   

He said optimism in this sector could be realistically analyzed from the fact that it saw the PE investment of around US$ 1 billion in 2019 and a strong II of US$ 712 million during the quarter ended March 2020.

Quoting the property consultant Anarock, Mo Abboud said by 2022, over 100 new shopping malls are to occupy the landscapes of the top seven metropolis which will have 69 malls and the remaining 31 malls in Tier 2 & 3 cities in India.

Explaining how India is offering very lucrative markets for investments by the Americans, Mo Abboud said the real estate industry currently is upbeat as one of its reasons being the Government’s approval in March, 2020 to two corporate giants TCS and DLF to set up SEZs for IT sector in Haryana and Uttar Pradesh.

He said Blackstone’s investment of a hefty US$ 12 billion is virtually a milestone in the realty sector in India.

Further arguing why the rapidly expanding realty in India now opens up new investment vista for the Americans, Mo Abboud said the SEBI has given its approval for the Real Estate Investment Trust (REIT) platform. Beside, the realty in India now is 100% open for the Foreign Direct Investments.

He said the REIT-approval by the SEBI further makes the realty sector more attractive as it will allow all kind of investors to invest in the Indian real estate market which has the potentiality to assume an enviable market size of US$ 19.65 billion in immediate future.

Pointing out the recent changes in Indian realty market, he said the players in the country’s real estate developers will be more open to the FDIs and foreign investments as they are shifting from family owned businesses to that of professionally managed ones in view of globalization.

Moreover, Mo Abboud commented, the major factors in coming years to act as robust drives in this sector emanated from expanding consumer bases, further spurt in globalization and emergence of India as one of the preferred destinations for investments.

Over the years, he said, the realty sector saw drastic paternal changes with the educated promoters streamlining the whole system with managing multiple projects across cities in India and investing in centralized processes to source material and organize manpower and hiring qualified professionals for project management, architecture and engineering.

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