Increased regulation a plus for booming Indian real estate

India has a burgeoning real estate investment market which has grown from about $900 billion in 2005 to about $3.5 trillion at present according to Rohan Sikri, Senior Partner, The Xander Group.

The Singapore-headquartered property private equity firm, which manages institutional capital from around the world, began investing in India in 2005.

“It was a very unique opportunity back then,” he told Real Asset Insight.

“It was very tightly controlled from a regulatory perspective.” Since then the market has “morphed hugely” in terms of cities, urbanisation, disposable income and consumption and this has created investment opportunities in different real estate asset classes.

Sikri pointed out that the market has also become more institutionalised. “The government has very consciously had a desire and, more importantly, the ability to execute some of these regulatory changes across different things such as the bankruptcy code, a unified tax system and is just generally more global in its approach, which has obviously helped the market and the opportunity.”