According to Colliers India, institutional investments in retail real estate witnessed a jump of over six times to reach US$ 492 million in 2022. This was witnessed because the businesses in shopping malls revived robustly post the pandemic period. Retail real estate attracted only US$ 77 million worth of institutional investments in 2021. Overall, institutional investments in the Indian real estate sector grew by 20% in 2022 to reach US$ 4.9 billion from US$ 4.08 billion in the previous year.
The alternate asset classes, which include data centres, senior housing, holiday homes, etc received an investment of US$ 867 million in 2022, registering a 92% increase as compared to that of 2021. The growth of alternate assets is led by investors looking to diversify their portfolios, given steady returns in some traditional asset classes. The institutional investments in office assets and the mixed-use projects also registered an increase of 50% and 150%, respectively. On the other hand, the industrial and warehousing assets, and the residential segment witnessed a decline.
Mr. Piyush Gupta, Managing Director, Capital Markets and Investment Services, Colliers India, mentioned that the performance credit, special situations, portfolio acquisitions, asset reconstruction, and related structures have been growing and are likely to attract more investments.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.