July-September Institutional investment in the real estate sector increased by 45 percent to about $1.15 billion in the quarter. According to recently released data by real estate consultancy firm Colliers India, investors are trying to cash in on the strong demand for premium homes and offices. According to the data, institutional investment in real estate stood at $1148.7 million during July-September. Whereas in the same period a year ago it was $79.34 million. The company said that among various asset classes in the total real estate market, the office segment attracted a business of $ 616.3 million during the third quarter of this year, which is seven times more than $ 79.1 million in the same quarter a year ago.
Demand increased a lot after Covid
The housing sector has seen a significant increase in demand after the Covid pandemic. It saw a 40 percent increase in investment, which increased from $274.6 million to $384.8 million. At the same time, a decline of 72 percent was seen in fund flow in the industrial and storage sector. It declined from $340.3 million in the September quarter of last year to $95.2 million in the same quarter this year. Investments in mixed-use projects nearly doubled from $27.2 million to $52.4 million.
Domestic investment of 500 million dollars
Alternative assets received no funding in the July-September quarter, compared to $72.2 million in the same period a year ago. This category includes data centres, life sciences, holiday homes, hostels and schools etc. Colliers said overall domestic investment remained strong at $500 million, accounting for 44 percent of total inflows during the July-September quarter. Piyush Gupta, managing director (capital markets and investment services), Colliers India, said, “Institutional inflows into Indian realty remain consistent, reflecting continued investor confidence. Investors are well diversified between global and domestic capital. “While the main focus has been on office assets, the industrial and warehousing and residential sectors are gaining significant momentum.”
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