Institutional investments in commercial real estate to increase in foreseeable future

financialexpress.com:

Driven by the nation’s promising growth story and lucrative opportunities, institutional investors have invested a whopping $1.6 billion in India’s commercial real estate segment in the second quarter of 2023, according to a report. It marked a remarkable increase of 33.3 per cent from the previous quarter.

The data showcased institutional investors’ unwavering confidence in India’s potential. What sets them apart from individual investors and end users is their systematic approach to decision-making. While sentiment and limited data often drive individual investments, institutional investors analyse trends, utilize statistical predictions, and make calculated moves involving substantial amounts of money, says Naveen Kumar, Managing Director, Navraj Group.

During April-June 2023, investments in commercial assets such as offices, retail spaces, co-working hubs, and hospitality projects surged significantly, capturing 88 per cent of the total investments. This surge clearly indicates the renewed demand for office spaces in the country.

“Unlike individual investors who often rely on sentiments or limited data, institutional investors meticulously analyze trends and make statistics-based decisions. Their confidence in India’s potential is evident in their substantial investment of funds, choosing India as a key destination for their global real estate portfolio,” says Sanchit Bhutani, Managing Director, Group 108.

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However, compared to the year-ago period, there was a slight decline of 40.7 per cent, underscoring the inherent volatility in the market. “The recent influx of $1.6 billion in Q2 2023 serves as a vote of confidence in India’s potential, with