‘Structural reforms paved way for global investor confidence’

He tells us, “There are certain types of capital for emerging markets, which appeals to all kinds of investors. India is the first choice in the world for emerging markets. Obviously, China was taking that spot, but the markets cooled down a bit as the returns are not the same as in India, which offers 8 per cent (particularly in Tier I markets) on office. In China prime cities yield sub 4 per cent returns, close to 3 per cent. This shows that China has moved up a bit in the maturity scale, whereas India is still seen as an emerging market, which is the reason behind high returns.” 

Speaking on reforms, he says, “The structural reforms are good for real estate – note ban, RERA and GST. It produces much more transparency in the market. So, if you are a foreign investor, that is very appealing. Over the last two years, India’s transparency has been improving significantly, meaning investors are more interested in that market because in their view it been de-risked and moving down the risk. It is also very attractive for that reason – fundamentals of India are very strong. Arguably, fast growing country in the world and therefore, the rapid urbanisation which fuels real estate growth. Very strong underlying fundamentals. 

On the course of the industry in the future, Couse says, “India is the biggest emerging market in the world and dealing with unseen urbanisation. It will continue to be in the spotlight for the years to come. Mostly, real estate investors are in for the long-term, which is the reason behind local developers are focused on residential. And, we know residential makes up 85 per cent of the real estate.  Investors are more long-term thinkers, who would park their funds in income producing assets like office and logistics. More capital is expected to come – which is important for a market. In some markets, there is an attempt to push away international investors. International capital is not just about money. It is about a partnership in terms of global expertise, with technology, design – a true partnership.”