Institutional investments in Indian real estate touch $3.6 billion in Jan-Sep: Colliers

 October 2022

As per the data, Delhi-NCR attracted institutional investments worth USD 754 million during the first nine months of this year, compared to USD 301 million in the year-ago period.

NEW DELHI: Institutional investments in Delhi-NCR's real estate market jumped 2.5 fold year-on-year to USD 754 million during January-September, according to Colliers India

The total investments in Indian real estate rose 18 per cent to USD 3.6 billion during January-September this year, from 3.03 billion in the corresponding period of the previous year. The inflows were driven by the office sector that accounted for 50 per cent share.

As per the data, Delhi-NCR attracted institutional investments worth USD 754 million during the first nine months of this year, compared to USD 301 million in the year-ago period.

In Bengaluru, investments grew 18 per cent to USD 375 million from USD 317 million. Chennai witnessed a sharp jump in inflows to USD 345 million from USD 98 million.

Institutional investments in the Mumbai real estate market rose 5 per cent to USD 477 million, from USD 452 million, but fell 96 per cent in Pune to USD 9 million from USD 232 million.

Hyderabad and Kolkata have not received any investments during January-September this year, as against USD 486 million and USD 105 million respectively in the year-ago period.

The investments in other cities or multi-city increased 54 per cent to USD 1,619 million during January-September this year, from 1,049 million in the year-ago period.

"The capital in Indian real estate is getting more broad-based with active participation also from domestic institutional and retail investors.

"Domestic capital is seen to flow across asset acquisitions, with credit in multiple asset classes with varied pooled structures," said Piyush Gupta, Managing Director, Capital Markets and Investment Services, Colliers India.

The sentiment of global investment firms to invest in India remains strong in spite of global slowdown trends, he said, adding that the current state of economics, with respect to inflation and interest rates, is not perceived to have a long-term impact.

Domestic investors have become more active in the market, with their investment inflows accounting for 18 per cent share during January-September 2022 compared to 14 per cent share during the same period last year.

However, global investors continue to dominate funding activity with higher participation in entity-led deals.

"With global investors partnering with local developers, there is ample dry powder to be invested in the Indian real estate market, especially in the office, and the industrial sectors," said Vimal Nadar, Senior Director and Head of Research, Colliers India.

Over the next few quarters, he said there might be some slowdown in deployment of funds due to the recession.

However, Nadar said the Indian market is relatively well-insulated and investors continue to view it favourably.