Institutional investment in housing jumped five-fold to US$ 433 million in January-June: Report
- IBEF
- July 19, 2023
According to Colliers India, institutional investments in the housing sector surged by nearly five times to US$ 433.4 million during January-June 2023, while inflows into industrial and warehousing assets increased by 95% to US$ 350.2 million. Housing and industrial and warehousing saw inflows of US$ 89.4 million and US$ 179.8 million, respectively, during the same time last year.
The institutional inflow of funds includes investments by family offices, foreign corporate groups, foreign banks, proprietary books, pension funds, private equity, real estate fund-cum-developers, foreign-funded non-banking financial corporations (NBFCs), and sovereign wealth funds.
During the first half (H1) of 2023, the residential sector witnessed a five-fold growth in investment inflows, majorly driven by domestic investments. According to a consultant, investments in residential assets have seen a recovery driven by increased home demand amid stable interest rates and healthy affordability levels.
As per the consultant, the industry would continue to see investment inflows thanks to an increase in domestic consumption as well as rising demand from the manufacturing sector and third-party logistics (3PL) players.
Institutional investments in Indian real estate increased overall across all asset classes by 43% to US$ 3.7 billion in the first six months of 2023 from US$ 2.57 billion in the same period the previous year.
Out of the overall inflow of US$ 3.7 billion during January-June, the office assets attracted US$ 2.7 billion during the period from US$ 1.1 billion in the corresponding period last year.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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