From pubs in Australia to fish farms in UAE, what is attracting investment in world real estate

From pubs in Australia to fish farms in UAE, what is attracting investment in world real estate

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Compared to pre-pandemic years, real estate, as a sector, has boomed in India thanks to relatively lower interest rates and rising sales. This has also increased the yields on investments in the sector.

The increase in demand for real estate can be gauged from RBI’s House Price Index. The data shows that in the period Q1FY19 till Q1FY22, the prices stagnated around the same level, meaning demand was not enough to lead to higher housing prices. This was in Mumbai.

In Delhi, prices actually fell during the period and yet to reverse to its peak levels. Chennai has fared relatively better - returning 16 percent over three years during Q1FY19 till Q1FY22- partly thanks to momentum in commercial properties, data for which other cities are not included.

However, since Q1FY22, the index is up about 8 percent within a year in Mumbai. In Kolkata, the improvement is even more stark at 16 percent. Delhi is the only region that has done worse.

Another way to read this data is that an investment in real estate in Mumbai at the start of FY19 would have delivered, nothing while in Delhi it would have bled money for the next three years. Whereas,