Why real estate investors should consider India

The past decade has been a defining one for India’s real estate sector. Major policy reforms — such as the Real Estate (Regulation and Development) Act and REIT regulations — have not only brought order and stability, but also better positioned the sector for institutional participation. The quality of buildings has improved significantly over the past 10 years to cater to an increasingly maturing and discerning customer base. Meanwhile, a long phase of consolidation has meant only the most reputable developer-operators are left in the market, many of whom have learned from past mistakes and upped their game.

The sector is now, therefore, better placed to attract capital from overseas. The market’s increased dependence on global institutional capital has given international investors more sway over the industry, enabling them to insist on global best practices. And the mispricing of capital, which once took place because of the proliferation of nonbank lenders, is a t