Institutional investments in realty sector rises 14% during Jan-Jun period

Institutional investments in Indian real estate rose 14 per cent annually to USD 2.6 billion during the January-June period, according to property consultant Colliers India.

Institutional investments in Indian real estate rose 14 per cent annually to USD 2.6 billion during the January-June period, driven by higher inflow in office and retail segments, according to property consultant Colliers India.

Office segment received investments of USD 1,276.8 million in January-June 2022, up 20 per cent from USD 1,068.1 million in the year-ago period, the consultant said in a statement.

Institutional investments in retail real estate jumped to USD 491.8 million from USD 77.2 million during the period under review.

The alternative assets (like data centre) rose 53 per cent to USD 369.8 million from USD 241 million.

Mixed use developments saw USD 230.7 million of inflow in January-June 2022 as against nil in January-June 2021.

However, institutional investments in industrial & logistics assets fell 77 per cent to USD 179.8 million from USD 774.9 million.

Residential segment saw 45 per cent fall in fund inflow to USD 86.4 million in January-June 2022 from USD 157.6 million during the corresponding period of the previous year.

The consultant said that domestic investors are back in the market with a 38 per cent share in the first half of 2022, a massive jump from just 13 per cent share in the first six months of 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," Colliers India said.

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.