India to receive $50 billion of Institutional Investment by the end of 2019.

According to a study conducted by the JLL, the Indian real estate market will have cumulative institutional investments worth around $50 billion in 2019, which include both foreign and domestic investments, as a result of large relaxation on investment norms concerning to Foreign Direct Investment (FDIs) and institutionalization of investments in a manner of REITS for all completed properties.

India’s commercial market has become institutional investors’ favourite asset class over the years. During 2005-2019 they received $17.6 billion in direct investment. JLL research shows 294 mn sq office inventories would be REIT compliant. This would contribute to an estimated $35 billion investment opportunity in the near term, according to the report.

“After the government’s opening of the FDI in March 2005, the country has been in a position to provide a conducive environment for investors. As a result, we have been witnessing a series of reforms in the areas of promoting investment regulations in affordable housing, infrastructure and construction sectors.

More than any other developed countries, India not only regularized the real estate market but introduced legislation to institutionalize investment in ready commercial assets, using REIT laws,” said Ramesh Nair, Chief Executive Officer and Country Head – India, JLL.

According to the latest JLL data, in the top seven cities in India, there are around 325 to 330 co-working operators. The study found that from 37,000 sq ft in 2017, the average size of transactions in the co-working sector grew to 52,000 sq ft in 2018 and up to 97,000 sq ft in the first half of 2019.

The changing complexity of workplaces and experience in the office sector has become important globally. In the millennials, the change in perception into sharing rather than owning has popularized the co-living term.