According to Colliers’ latest research report, investments in real estate properties in India went up to $2.4 billion (Rs 18,600 crore) in H1 2021 (January-June), representing a 52 per cent increase from inflows in assets in H1 2020. Office sector investments accounted for almost 35 per cent of total investments in the first half of 2021.
Industrial and warehousing sector garnered the second highest inflows with a share of 27 per cent in total inflows in India during H1 2021. The increased demand from e-commerce companies for logistics space has in turn resulted in continued interest from institutional investors with inflows of about $775 million (Rs 5,657 crore) in H1 2021. Data centres saw investments of about $161 million (Rs 1,175 crore), with corporates tying up with global data centre providers.
Ramesh Nair, CEO, India & MD, Colliers, Market Development, Asia further added, “There is a huge potential for global funds in India. Office assets will continue to gain fervour from investors due to the steady returns from the asset class, and opportunity to bundle the assets under a Real Estate Investment Trust.”
According to him, “Global funds are also looking to form investment platforms with developers, as they look to build their capabilities in sectors such as industrial and warehousing space, buoyed by the growth in e-commerce and the need for same-day delivery.”
While the majority of the office investments have been in non-central business district locations across cities, investors are scouting for office assets either in land or in under-construction stage.