Foreign investments continued to lead with 77% share in total investments while domestic investments remained strong and witnessed a two-fold rise at $1.1 billion.
Institutional investments in Indian real estate touched $4.6 billion during January-September 2023, a 27% year-on-year increase, highlighting the resilience and attractiveness of the market despite prevailing global challenges.
As per a report by Collier India, institutional investment inflows for 2023 have already reached 93% of the total inflows recorded in 2022, despite a clouded global economic environment.
Foreign investments continued to lead with 77% share in total investments while domestic investments remained strong and witnessed a two-fold rise at $1.1 billion.
Domestic investments led activity in the third quarter of 2023 formed 63% of the total investments, abutting the overall investment volume at $0.8 billion for the quarter.
While office assets saw moderation in inflows during the quarter, residential and industrial & warehousing segments witnessed a rebound accounting for about 78% of the total investment volume.
“There is a huge need for Grade A industrial warehousing facilities. With the improved connectivity and recent government initiatives, we believe that modern, large, best-in-class logistics and Grade A industrial warehousing facilities will continue to be in demand,” Rajesh Jaggi, Vice Chairman – Real Estate, Everstone Group had said during a recent interaction.
Investment inflows in the office sector rose 1.6X year-on-year during Jan-September 2023, at $2.9 billion, led by select large deals in the sector. Investors are actively forming large joint venture (JV) platforms to capitalise on emerging opportunities and participate in existing as well as upcoming office projects. While investors remain committed to office asset class during 2023, industrial & warehousing and residential sectors also saw a significant rebound.
Domestic investors gain further ground with 1.7X rise in inflows during January-September 2023.
“At a time when major global economies are weighed down by inflation woes, India’s real estate market stands strong, by navigating through difficult market conditions.
“The resilience of the market can be gauged in terms of heightened deal activity and amount of capital allocated across diverse asset classes. During the first nine months ended September 2023, overall institutional investments stood strong at $4.6 billion,” said Piyush Gupta, MD, Capital Markets & Investment Services at Colliers India.
https://www.financialexpress.com/business/industry-institutional-investment-in-real-estate-touches-4-6-billion-in-jan-sept-2023-3265981/
