DELHI: Investment in Indian real estate declined by 65 per cent to $1.2 billion during 2013 but the country was able to retain 10th rank in Asia Pacific, global property consultant Cushman & Wakefield said.
Investment in real estate sector in India stood at $3.4 billion during 2012.
"India has received a total estimated investment of $1.2 billion in the real estate sector making it the 10th most invested location in APAC region," C&W said in a statement. quoting its latest report 'Investment Market Beat' 2013.
C&W said the APAC region received a record $487 billion of investment in the real estate sector.
Of the nations surveyed for investments, China (core & emerging) recorded the highest volume of investments of $358 billion, followed by Japan (3rd rank) that recorded investments worth $44.6 billion in 2013.
However, India was able to maintain its 10th position on the APAC stack despite the decline in investments largely due to some significant decline in volumes in other markets such as Philippines, Indonesia, Thailand and Taiwan.
According to the report, investment in land was highest in India at $838 million followed by office ($247 million) in India during 2013. Investment in land suffered a decline of 61 per cent while office saw a decline of 77 per cent.
Commenting on the report, C&W Executive Managing Director South Asia Sanjay Dutt said: "There is a poignant pause that the investors have adopted so far as the Indian real estate market scenario is concerned, largely on account of the fact that India is currently at political cusp with general elections for the country just around the corner".
Dutt noted that investors are shying away from making futuristic investments due to suggested regulatory framework changes, which are yet to be implemented.
"This decline in investment numbers are however, not indicative of the sentiments investors have of India, as it continues to show future promise as a key market with the APAC region. This can be well understood from the fact that private equity has seen a rise of approximately 13 per cent Y-o-Y in the 2013," Dutt said.
The consultant expects remarkable improvements in the economy in general and investment markets in specific by 2015.