India is all set to overtake China as an attractive property investment destination just as valuations of property investments in China are declining.
The property price index has been growing steadily in India in the past few years. The All India House Price Index (HPI) published by the Reserve Bank of India (RBI) grew at an
annual rate of 3.5 per cent for the quarter which ended in June (Q1: 2022-23), expanding 1.8 per cent compared with the previous quarter.
Meanwhile, all is not well in the Chinese property market. Last week, the Chinese government released data that showed that new home prices fell at their fastest rate in over seven years, while property sales measured by floor area fell for a 15th straight month in October.
Based on data from the National Bureau of Statistics of China, for the year-to-date period till October, investment in real estate development fell 8.8 per cent compared with the same period in the previous year, commercial floor space sold dropped 22.3 per cent, while revenue from commercial buildings sold plummeted 26.1 per cent.
Although China is now taking measures to revive its property sector, real estate investment firms like Singapore's CapitaLand Investment (CLI) which has a third of its assets in China are looking to diversify their portfolio. Vietnam and India were cited by CLI as possible destinations for future investments.
(ANI)