Institutional investments in Indian real estate touched $ 2.6 billion during H1 2022, a 14 per cent rise from H1 2021, Colliers India said in a report. Investors are enthused by the recovery seen across the Indian real estate spectrum, after Covid-19-induced disruptions. The inflows during H1 2022 was led by the office sector which accounted for about 48 per cent share, followed by the retail sector with a share of 19 per cent.
On a quarterly basis, inflows into Q2 2022 have increased from the preceding quarter, while registering a 50 per cent increase from the average quarterly inflows of 2021. Delhi-NCR saw the highest share of inflows at 35 per cent, followed by Mumbai with an 11 per cent share and Chennai with a 10 per cent share. However, multi-city deals continue to be on the rise, with a 43 per cent in investments during H1 2022. These deals were entity-led for assets across multiple cities.
“The first half of 2022 has witnessed euphoria of businesses bouncing back with increased office and industrial leasing, retail and travel spend, and continued buoyancy in the residential sector. However, the market is seeing some caution on account of geopolitical tensions and increased expected risk-adjusted returns. 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,” said Piyush Gupta, Managing Director, Capital Markets & Investment Services, Colliers India.
Interestingly, domestic investors are back in the market with a 38 per cent share in H1 2022, a massive jump from just 13 per cent share in H1 2021. Domestic investors were majorly inclined towards mixed-use assets and the retail sector. However, investments continue to be driven by foreign investors wherein pension and sovereign funds are betting on income-yielding assets in the office, retail and industrial sectors.