Institutional investments in Indian real estate at $2.6b in H1-2022
Offices sector was the biggest recipient of inward flows, followed by retail
Institutional investments in Indian real estate hit $2.6 billion during H1-2022, which works out to a 14 per cent year-on-year increase. Investors were ‘enthused by the recovery seen across the Indian real estate spectrum, after Covid-induced disruptions’, according to Colliers India.
The inflows were led by the office sector which accounted for about 48 per cent of the total, followed by retail with a share of 19 per cent.
“However, the market is seeing some caution on account of geopolitical tensions and increased expected risk-adjusted returns,” said Piyush Gupta, Managing Director, Capital Markets & Investment Services, Colliers India. “Investments in India continue to increase in both development and operating assets. With the current business environment, India will benefit the most from the Asian economies with increased capital inflows.
“The Indian real estate is likely to witness both equity and credit inflows tapped by existing and newer investment management platforms.” On a quarterly basis, inflows during Q2-2022 registered a 50 per cent increase from the average quarterly inflows of 2021. At the same time, domestic investors are back in the market with a 38 per cent share in H1-22.