According to a consulting firm, CB Richard Ellis (CBRE) South Asia Private Limited, real estate investments in India registered a 32% increase on a year-on-year basis to an all-time high of US$ 7.8 billion in 2022.
According to the report titled 'India Market Monitor 2022', on a quarterly basis, the investments in Indian real estate stood at US$ 2.3 billion in the October-December quarter, growing by 64% quarter-over-quarter and 115% on a year-on-year basis.
In 2022, foreign investors took the lead with a 57% share in the overall real estate investment volume. Investors from Canada accounted for nearly 37% of the foreign capital inflows, followed by those from the US at 15%. In addition, the report noted that domestic investors contributed the remaining 40% of the total investment in 2022. The institutional investors led the investment activity in 2022 with a share of about 51%, followed by the developers at 32%.
Regarding the state-wise data, Delhi-National Capital Region (NCR) and Mumbai, cumulatively led the investment activity with over a share of 56%. Whereas, in terms of sector-wise distribution, the land and development sites dominated the investments with a share of 48%, which was followed by the office sector with a 35% share. As per the report, about 44% of the capital inflows in site/land acquisitions were deployed for residential developments, while 25% went into mixed-use developments.
On Investment Outlook, the report stated that capital flows are likely to remain steady and the investors are expected to remain cautious amidst recessionary fears in the US and Europe. The year 2023 could see the listing of India's first retail real estate investment trust (REIT), which would widen investment avenues for investors. There is a possibility that a few large institutional investors could diversify their presence from the office sector to retail, interests, and liabilities (I and L), and some new investors might also enter the Indian real estate landscape.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.