According to property consultancy, Colliers India, institutional real estate investment is expected to grow by 4% to USD 5 billion (Rs 36,500 crore) this calendar year, with investors eager to buy up properties at reasonable prices amid the COVID epidemic. Investment stood at USD 4.8 billion in 2020.
During the first six months of the calendar year 2021, investment in the Indian real estate market totalled USD 2.9 billion (Rs 21,170 crore), up more than twofold from the same time the previous year. Investors continue to have a good demand for office assets, according to the consultancy, which accounted for 35% of overall investments in the first half of this year.
The industrial and warehousing industry received USD 775 million (Rs 5,657 crore) in investments from January to June this year, the most in any year since 2016. Its proportion of overall institutional real estate investments was 27%.
"Investors see the current situation as a chance to buy homes at attractive prices," according to Colliers India report.
In January-June 2021, the residential sector, which continues to face liquidity issues, witnessed just 4% of overall investments, with debt deals being the most common method of investment. Data centres witnessed investments of over USD 161 million (Rs 1,175 crore) in the first half of 2021, with corporates partnering with global data centre operators.
"In the first half of 2021, retail assets accounted for 29% of overall investments. Even though COVID caused significant disruption to retail businesses and a drop in rental revenues, investor appetite for exposure to stabilised retail assets as well as investments in ground-up developments in collaboration with select developers remained unchanged ", as per the report.
More capital will be spent in build-to-core mixed-use, office, and logistics assets over the next three years, according to Colliers, as more investment platforms are created between global private equity firms and local developers. Investors should look at last-mile finance in the residential sector, which has some latent demand, according to the expert.
"As investors diversify away from typical office projects, we expect momentum to grow around life sciences laboratories, logistics assets, and data centres," Colliers India said.
Source: Money Control