Investments in Indian real estate are rising sharply; office segment in high demand: report

New Delhi: Investment in India’s real estate sector by institutional entities reached $3.6 billion between January and September 2022, an 18% year-on-year increase, mainly driven by demand for office space, data gathered by Nasdaq-listed global professional services and investment management company Colliers showed.
Investment in the office sector grew 53% year-over-year in the first three quarters of 2022, which saw some big deals,” Colliers said in a statement Thursday.
He said while investors remain committed to the Indian market, global “recessionary concerns” may cause some delay in the deployment of funds.
“The office sector has seen a healthy recovery since the end of last year, with occupants renting large spaces, as offices are now seen as a place to collaborate. REITs in the future,” he said.
The capital of the Indian real estate sector is expanding with the active participation also of institutional investors and domestic individuals, said Piyush Gupta, Managing Director, Capital Markets and Investment Services, Colliers India.
Domestic investors have become more active in the market, with their investment inflows accounting for 18% share, up from 14% share in the same period last year.
“Sentiment among global investment firms to invest in India remains strong despite global slowdown trends. The current state of the economy, in terms of inflation and interest rates, is not seen as having a long-term impact,” Gupta added.
From January to September 2022, NCR Delhi recorded the highest share of inflows with 21%, followed by Mumbai and Bangalore.
The year 2022 has seen several platform agreements between institutional investors and developers for specific sectors. Industrial and logistics assets are at the top of investors’ radars.
“With global investors partnering with local developers, there is plenty of dry powder to invest in the Indian property market, particularly in the office and industrial sectors. Over the next few quarters, although it may Although there may be some slowdown in the deployment of funds due to the recession, we believe the Indian market is relatively well insulated and investors continue to view it favorably,” said Vimal Nadar, Senior Director and Head of research at Colliers India. (ANI)