Beacon of stability: Indian realty saw record-breaking institutional investments in 2023; domestic players drive growth

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Piyush Gupta, Managing Director of Capital Markets & Investment Services at Colliers India. "Investors from the APAC region have been showing an increasing appetite for Indian real estate, contributing to about half of the total foreign inflows during 2023. Looking ahead to 2024, investment activity will likely remain unabated backed by robust domestic economic fundamentals, while a strategic integration of technology and ESG will play out in investment decisions." The story, however, was intriguing when the sources of this investment were looked at.

While foreign capital still reigns supreme, accounting for 67 per cent of the total inflow, the rise of domestic investors is the true game-changer. The segment witnessed a staggering 66 per cent annual jump, reaching USD1.7 billion and securing a 32 per cent share of the pie. This shift signifies a growing trust in India's real estate landscape from within, further fuelling the investment engine, the report further added.

The office sector remains the undisputed king, attracting a whopping 56 per cent of the total inflows. Global giants and domestic players alike flocked towards completed and income-generating properties, showcasing unwavering faith in the future of India's workspaces. Investment in alternative assets in India started slowly in 2023, but roared back in the final quarter, pushing the yearly total to USD 650 million.