INSTITUTIONAL INVESTMENTS IN REALTY SEEN RISING BY 14.6%
Investments in Indian real estate is expected to grow by 14.6 per cent to Rs
39,600 crore in 2021 from Rs 34,600 crore in 2020, as institutional investors continue to be bullish on domestic real estate asset classes such as offices, data centres and warehouses and are looking to deploy their existing dry powder, Colliers has said in its report.
In 2020, investments had dropped 23 per cent from
2019.
Between 2018 and 2020, an average annual supply of over 35 million square feet entered the top six Indian cities such as Bengaluru, Chennai, Delhi NCR, Hyderabad, Mumbai and Pune, with the majority being snapped up by institutional investors.
Even though a similar level of supply is set to enter the market, some investment firms are increasingly looking towards developing their own greenfield office assets, the report said.
Investors remain bullish on the long-term prospects even as they target an internal rate of return of about 17-18 per cent.
“The investment climate in India is very buoyant with global investors’ interest in real assets getting stronger,” Piyush Gupta, managing director, Capital Markets & Investment Services (India) at Colliers, said.
Moreover, the resilience of the Indian market is also evident from continued good housing sales across various markets, the large institutional investments in commercial office and industrial parks, and the listing of two REITs in the past six months, he pointed out.