Institutional investments in Indian real estate recorded at $5.4 billion, inching towards pre-pandemic levels
Institutional investments in the Indian real estate sector maintained a steady momentum at $5.4 billion, rising 10% y-o-y during 2023, with the office segment to be the highest contributor. The year witnessed the highest levels of investment inflows since 2020 showcasing India's resilience despite uncertainties in global markets otherwise.
Office sector continued 56% share in total inflows in 2023, attracting both global as well as domestic capital, led by select large deals.
The uptick reflects a rising interest in completed and pre-leased income-yielding office assets, showcasing investors' sustained confidence in the long term potential of the sector.
«As India's real estate sector closes yet another promising year, institutional investments saw an increase of 10% and stands at $5.4 billion—the highest since 2020. The investments in Indian real estate are more broad-based, with significant investments coming into education, shared spaces, and data centers, adding to a strong domestic upcycle in office, residential, and industrial areas,” said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.
After witnessing subdued activity in the first 3 quarters, investments in alternatives rebounded in the last quarter, taking the overall inflows in alternatives to $650 million for the year.
The segment had a 51% share in total inflows during Q4 2023, indicating strong demand across data centers, student housing, life sciences, schools amongst others.
“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 is likely to remain unabated
