India’s office sector sees institutional investments worth $1.8 bn in Apr-Jun: Report
New Delhi: India’s office real estate sector saw record institutional investments of $1.8 billion in second quarter of 2023, the highest for the past 10 quarters, according to Colliers’ data. The investment marks a 2.5 times year-on-year increase for H1 2023, bringing the total to $2.7 billion.Making up a substantial 74% of investment inflows for H1 2023, the office sector outstripped the residential sector, which attracted just 12%.
The overall institutional investment inflows into the Indian real estate market surged by 43% year-on-year, amassing $3.7 billion in H1 2023. The office sector accounted for the largest share of investment inflows during H1 2023, standing at 74%, followed by the residential sector at a distant 12%.
Overall, institutional investment inflows into the Indian real estate market rose by 43% year-on-year to $3.7 billion in the first half of 2023. Despite a weak global economic environment, institutional investment inflows have already reached 75% of the total inflows in 2022.
The strong domestic economic outlook and the robust fundamentals of real estate asset classes, including office and residential properties, have contributed to this positive trend. Institutional investors have shown a particular interest in the office sector due to increased opportunities, resilient demand, and strong growth prospects over the next 2-3 years.
Factors such as sturdy demand for Grade A office space, a robust supply pipeline, improved transparency, and the availability of exit avenues through Real Estate Investment Trusts (REITs) have bolstered foreign investments in the office sector over the past five years. During the first half of 2023, foreign investments in office assets amounted to $1.9 billion,
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