edited by: Mohammad Haris
Last Update: January 25, 2023, 6:06 pm IST
On a quarterly basis, investment in Indian real estate stood at $ 2.3 billion in the October-December 2022 quarter, which has increased by 64 percent quarter-on-quarter and 115 percent year-on-year.
Delhi-NCR led the investment activity, followed by Mumbai; Both cities account for more than 56 percent of the total investment in 2022
Investment in the Indian real estate sector to grow by 32 per cent year-on-year to reach an all-time high of $7.8 billion in 2022. 115 per cent quarter-on-quarter and year-on-year, according to a report by real estate consultancy firm CBRE.
“Foreign investors lead the way with a share of 57 per cent in the total investment volume in 2022. Canadian investors accounted for nearly 37 percent of foreign capital inflows, followed by the US (15 percent). Domestic investors to contribute the remaining 40 per cent of the total investment in 2022. Overall, institutional investors led 2022 investment activity with a share of around 51 per cent, followed by developers at 32 per cent,” CBRE South Asia said in the report titled ‘India Market Monitor 2022’.
It added that Delhi-NCR led the investment activity, followed by Mumbai. Cumulatively, the two cities accounted for more than 56 percent of investment in 2022. Investments were dominated by land/development sites with a share of 48 per cent, followed by the office sector with 35 per cent. About 44 per cent of the capital inflow in site/land acquisition was earmarked for residential development, while 25 per cent went to mixed-use development.
Anshuman Magazine, President and CEO (India, South-East Asia, Middle East and Africa), CBRE, said, “The record investment inflows, the highest ever for the region, reflect the resilience and growth potential of the Indian real estate sector. Unaffected by global headwinds, equity inflows into the sector are expected to remain stable in 2023. Additionally, we expect to see the listing of India’s first retail REIT in 2023, which will help investors broaden their investment horizon. Will enable.”
Gaurav Kumar, managing director (capital markets and residential business), CBRE India, said, “There is a possibility that some large institutional investors may diversify their portfolios by including I&L, retail and DC assets. We could potentially see some new set of investors in the real estate segment.”
On investment outlook, CBRE said capital inflows are likely to remain stable; Investors are expected to remain cautious amid fears of recession in the US and Europe. The year 2023 may see the listing of India’s first retail REIT, which will widen the investment avenues for investors.
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