Jan-June investment inflows in Indian realty up 14% YoY at USD 2.6 bn

INDIA : Institutional investments in Indian real estate touched USD2.6 Bn during H1 2022, a 14% rise from H1 2021. 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% share, followed by the retail sector with a share of 19%. 

On a quarterly basis, inflows into Q2 2022 have increased from the preceding quarter, while registering a 50% increase from the average quarterly inflows of 2021. 

“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 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% share in H1 2022, a massive jump from just 13% 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.