Indian real estate in 2023 saw the highest investment inflows since 2020

In the fiscal year 2022-23, the Indian real estate sector experienced a noteworthy surge in investment inflows, reaching the highest level since 2020, as disclosed by real estate consultancy Colliers. The total investment inflows for 2023 amounted to US $ 5.4 billion, reflecting a 10% increase compared to the previous year, 2022. Notably, the office sector maintained prominence, contributing significantly to a 56% share of the total inflows. Foreign capital infusion into Indian real estate was chiefly sourced from Canada and Singapore, constituting 78% of the global real estate inflows into India throughout 2023. Furthermore, investment inflows from Asia-Pacific nations demonstrated a remarkable uptrend, surging to 3.6 times the figures recorded in 2020. Investors' favourable perception of India is attributed to its robust economic performance, enhanced regulatory framework, and sustained demand across various real estate segments.

Despite these positive trends, investment inflows from the United States witnessed a decline in 2023 compared to 2020. In the same fiscal year, India recorded its highest allocation towards office space, accounting for US$ 3 billion out of the total US$ 5.4 billion investments in the real estate sector. This underscores the growing significance of office spaces as a preferred investment avenue in the Indian real estate landscape.

In summary, the real estate landscape in India for FY23 showcased resilience and attractiveness to global investors, with increased capital inflows, a strong focus on the office sector, and continued confidence driven by economic performance and regulatory improvements.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.