Institutional Investments In Realty Sector Rise 14% To $2.6 Billion In January-June Period

Institutional investments in Indian real estate rose 14 per cent annually to $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 $1,276.8 million in January-June 2022, up 20 per cent from $1,068.1 million in the year-ago period, the consultant said in a statement.

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

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

Mixed use developments saw $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 $179.8 million from $774.9 million.

Residential segment saw 45 per cent fall in fund inflow to $86.4 million in January-June 2022 from $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.