The inclination to invest in office and residential spaces led to rise in institutional investments in India during the first quarter of 2023.
There is 37% upward movement in inflow of the Indian real estate from January to March this year. Colliers India’s recently released data shows. However, the investment was 1.2$ billion in the first quarter of 2022. Hence, this is a massive growth in the trajectory on YoY basis.
As per the report, out of the total investment inflow for Q1, 2023, the office domain accumulates 55% share between January-March. In the first quarter of 2023, foreign investors prefer to make investment in office spaces. On the contrary, domestic investors prefer to invest in the housing sector. The local investors’ inclination towards housing properties led to 22% in the residential domain.
The inflow in office segment rose from $643.6 million to $907.6 million in the first three months of the current year. The figure calculates to 41 per cent in comparison to the last year. Similarly, the investment inflow for the housing segment surged from $16.5 million to $361.1million. Followed by 20% growth in investment in Warehousing and Industrial domains. The investment figure grew from $179.9 million to $216.3 million. Parallel to this, investment in other real estate portfolios investment rose from $39.7 million to $158.2 million. Delhi-NCR and Bengaluru recorded maximum number of investment inflow during Q1, 2023.
Although, 80 per cent fall is recorded in mix-use developments as inflows decreased from $77.3 million investment to $15.1 million.
Piyush Gupta, Managing Director, Capital Markets & Investment Services, at Collier India said, “In the coming quarters, we shall see some large quality assets traded in office and select logistics.”
Vimal Nadar, Senior Director & Head of Research, Colliers India said, “Global institutional investors’ appetite for office assets remains strong owning to India’s growing talent pool, digitisation, enhanced transparency in deal structures and stable returns.” He further said, “foreign investments accounted for about 93% of the total investments in office assets during Q1, 2023.”
