Investments In Indian Real Estate Sector Jump 20% To $4.9 Billion During 2022: Colliers

As real estate in the country grows in 2022, total investments in Indian realty during the year reached $4.9 billion, registering a 20 percent year-on-year growth. According to a report by real estate consultancy firm Colliers, institutional investors are enthused by the potential of the Indian realty market, albeit in a cautious environment.

It added that this comes at a time when investors are looking at high inflation as well as high interest rates in some countries, apart from recession concerns and geopolitical tensions, which may reduce deployment of funds on a short-term basis. Can

Colliers also said that global investors are attracted by the stable demand dynamics across asset classes and the opportunities to invest in operating and developing assets in the market. While global investors continue to dominate the funding activities with higher participation in entity-led deals, domestic investors have also become more active in the market.

Vimal Nadar, senior director and head of research at Colliers India, said, “The share of domestic investment inflows in 2022 has surpassed the share in 2021, accounting for 22 per cent of total inflows. Residential property continues to account for a portion of household investment. Overall, although overall investment inflows have still not exceeded pre-pandemic levels, investors remain rooted in India’s real estate even in challenging times. Large global investors will continue to partner with domestic firms to set up investment platforms.”

alternative realty assets

The report states that institutional investment in alternative asset classes of Indian real estate is set to reach a new high of USD0.9 billion in 2022, accounting for 18 per cent of inflows during the year. Investment in alternative assets, which saw a 92 per cent increase in investment during 2022, has increased more than four times since 2019.

2022 has seen a sharp jump in inflows as investors pumped money into some of India’s emerging sectors such as data centres, life sciences etc. The growth of alternative sectors is led by investors looking to diversify their portfolios, given the steady returns in some traditional assets. classes.

“While inflows into alternative assets peaked, inflows into the office sector continued their dominant streak in 2022 as well, accounting for 41 per cent share in total inflows. Investments in this sector increased by 50 percent year-on-year due to some big deals. As investors are building a portfolio that they can bundle as REITs, they continue to see flexibility in greenfield and ready-to-move assets. Most of the deals in the office sector were driven by global investors looking at income-generating assets,” Colliers said.

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