Real estate investment in India climbed 32% year over year to a record $7.8 billion, according to consultancy company CBRE South Asia Pvt Ltd. According to CBRE’s research, India Market Monitor 2022, quarterly investment in Indian real estate increased by 64% from quarter to quarter and by 115% from year to year, totaling $2.3 billion during the October-December quarter.
With 57%, foreign investors seized the lead. Nearly 37% of foreign capital inflows came from Canadian investors, who were followed by Americans 15%. In 2022, domestic investors made up the remaining 40% of the total investment. Developers came in second with 32% of the market share for total institutional investors in 2022.
Almost 51% of the investments made in 2022 were made by institutional investors, who were followed by 32% by developers. Delhi-NCR was the city with the most investment activity, followed by Mumbai, with a combined share of nearly 56.0%. shares for investments in 2022. Investments accounted for 48% of land and building plots, with the office sector coming in second with 35%.
The research states that residential developments received about 44% of land/land purchase capital inflows while mixed-use projects received 25%. Record investment inflows, the biggest ever in the industry, indicate the resiliency and development potential of the Indian real estate market, according to Anshuman Magazine, President & CEO of CBRE for India, Southeast Asia, the Middle East, and Africa.
“Based on the global horizon through 2023, capital inflows into the industry should be steady. We also anticipate the 2023 listing of India’s first retail REIT, which will enable investors to widen their investing horizons. “Some big institutional investors can diversify their portfolios to include Industrial and Logistics, Retail, and Convention Centers,” stated Gaurav Kumar, Managing Director, Capital and Residential Markets, at CBRE India. According to the report’s investment outlook, capital flows are anticipated to remain steady as investors continue to be wary due to recession fears in the US and Europe. The report also noted that the first retail REIT may launch, which would increase the number of investment opportunities available to investors.
We have seen the rise of new investors in the Indian real estate market, although some significant institutional investors with a strong presence in industrial branches in India might broaden their portfolios to include assets I&L, retail, and DC. It was stated that given the external uncertainties in India’s renewable energy market, partnership models may become more pertinent to reduce risk and manage operational issues. According to him, rising borrowing costs combined with high-interest rates brought on by ongoing inflation may reduce short-term gains.
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