Real estate investment up 14% to $2.6 billion in January-June; Highest influx was seen in Delhi-NCR

In form of real estate sector Recovery is being seen from the effects of coronavirus Pandemic in Indian real estate, institutional investment saw a jump of 14 per cent year-on-year to $2.6 billion during January-June 2022. The inflow was led by the office sector, which accounted for about 48 per cent, followed by retail. According to a report by Colliers India, the sector accounts for 19 per cent.

On a quarterly basis, inflows during April-June 2022 increased over the preceding quarter, registering a jump of 50 per cent over the average quarterly inflows of 2021.

“The first half of 2022 has seen an uptick in businesses with increased office and industrial leasing, retail and travel expenses, and a continued boom in the residential sector. However, the market is seeing some caution due to geopolitical tensions and heightened risk-adjusted returns. invested in India Piyush Gupta, managing director (capital markets and investment services), Colliers India, said both growth and operating assets continue to grow.

He added that with the current business environment, India will benefit the most with increased capital flows from Asian economies. Indian Realty It is likely to see both equity and credit inflows tapped by existing and new investment management platforms.

Domestic investors are back in the market with 38 per cent stake in H1 2022, a huge jump from just 13 per cent in H1 2021. Domestic investors were inclined towards mixed-use properties and retail. However, investments by foreign investors have continued, with the Pension and Sovereign Fund Office betting on income-yielding assets in the retail and industrial sectors, the report said.

investment in the office sector

During the first half of 2022, the office sector achieved about 48 per cent of the total investment. Colliers India said investors are seeing encouraging signs of revival in the office sector since the end of last year.

It added that while a hybrid style of work is the dominant way of working, the adoption of large technology corporate office spaces continues. Investors are taking a medium to long term view of the sector with the intention of tying up assets in REITs. As a result, investment in the office sector grew 20 percent in the first half of 2022.

During H1 2022, the retail sector saw a 19 per cent share of investments, as investors look to full-fledged malls as an investment avenue. Fashion and F&B (food and beverage) brands are expanding in India’s retail market. Apart from this, the mall has been witnessing a good increase in the number of people since last year. The industrial and logistics sector and the residential sector witnessed a slowdown in inflows during the first half of 2022.

Investment flows into alternative assets rose 53 percent to nearly $370 million during the first half of 2022, indicating that investors are betting big on diversifying their portfolios. Deals during this period ranged from data centers, vacation homes and life sciences.

Vimal Nadar, Senior Director and Head (Research), Colliers India said, “India will be affected by the slowdown in global markets. On the positive side, we see a boost in IT services in India. We can expect more investments in global capacity centers in India in the next few years.

He said India’s alternative assets have untapped potential that investors are looking at from a diversification perspective. “During H1 2022, inflows into alternative assets accounted for 14 per cent of total investments. The next few quarters will see some greenfield investments, especially in the office and industrial and logistics sectors.”

Sector-Wise Investment Flow

Delhi-NCR saw the highest inflow at 35 per cent, followed by Mumbai at 11 per cent and Chennai at 10 per cent. However, multi-city deals continue to increase with 43 percent in investments during the first half of 2022. These deals were entity-led for properties in several cities.

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