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Institutional investment in Indian real estate has been a mixed bag last year, per a new report by Colliers.
🔼 On the upside, capital flows came on a broad-based recovery across most real estate segments, geographies, and Indian realty saw the number of investment deals double, when compared to 2020.
🔽 On the downside, real estate institutional investments in 2021 closed at USD4 billion, a 17% drop when compared to 2020, which had witnessed the closure of some large transactions.
Best Year For Logistics And Residential
With about 50% of the total USD4 billion flowing into the industrial, logistics, and residential sectors, 2021 has been one of the best please-take-my-dollars years for these assets.The industrial and logistics sectors alone saw investments rise to a five-year high of USD1.1 billion, a 5X increase from 2020.
Offices Still Dominant
Offices Still Dominant
The office sector by itself attracted the highest investments at USD1.2 billion - 31% of the total investments in 2021.
Offices have always been the dominant real estate segment but in 2020, offices had commanded 45% of the total USD4.8 billion investments.
Plan Bs Are In Demand
Alternate segments (student housing, co-living, life sciences, data centres) accounted for 11% of the total investments in 2021, up from 8% in 2020, while data centres got the lion's share with 60% of total investments in alternate assets in 2021.
🎙 "The broad-based recovery signals signs of ebullience amongst investors....niche asset classes such as data centres, student housing and life science will provide a unique opportunity for investors to diversify their investments," opines Vimal Nadar, Colliers India.
Opportunities Galore...