According to Colliers International, institutional investments in Indian real estate totaled $3.6 billion between January and September.

NEW DELHI: According to Colliers India, the NCR real estate market increased 2.5 times year on year to $754 million between January and September. From January to September this year, total investments in Indian real estate increased 18% to $3.6 billion, up from $3.03 billion in the same period last year. Inflows were led by the office sector, which accounted for half of the total.

According to the data, institutional investments totaled $754 million in the first nine months of this year, an increase from $301 million in the same period last year. Bengaluru’s investment increased by 18%, to $375 million from $317 million. Inflows to Chennai increased significantly, from $98 million to $345 million.

Institutional investments in the Mumbai real estate market increased by 5% to $477 million from $452 million but fell by 96% to $9 million from $232 million in Pune. Hyderabad and Kolkata received no investments from January to September this year, compared to $486 million and $105 million, respectively, the previous year.

Investment in other city or multi-city projects increased 54% year on year to $1,619 million, up from $1,049 million the previous year. Domestic institutional and retail investors are actively participating in the growing diversity of Indian real estate capital.

Domestic capital is seen to flow across asset acquisitions, with credit in multiple asset classes with varying pooled structures, said Piyush Gupta, Managing Director, Capital Markets and Investment Services at Colliers India.
Despite global slowing trends, global investment firms remain bullish on India, he said, adding that the economy’s current state in terms of inflation and interest rates is not expected to have long-term consequences.

Domestic investors’ market participation has increased. Their investment inflows account for 18% of total investment from January to September 2022, up from 14% in the same period last year. Global investors, on the other hand, continue to dominate funding activity, with increasing participation in entity-led transactions.

“With global investors collaborating with local developers, there is plenty of dry powder to be invested in the Indian real estate market, particularly in the office and industrial sectors.” Colliers India Senior Director and Head of Research Vimal Nadar stated in the coming quarters, he predicted that the recession would slow fund deployment.
However, according to Nadar, the Indian market is relatively well-insulated and investors continue to favour it.