Institutional investments in Indian real estate at USD 966 million
Office sector accounts for 67% investment share
Bank’s credit to the real estate sector crosses USD 4 billion from Jan-May 2022
- Office sector accounts for 67% investment share during Q2 2022
- NCR leads in deal volume with USD 373 million
- Real estate sector lending by banks surge by 3.5x times post-pandemic
- Banks reach 75% of 2021 real estate lending levels in the first five months of 2022
Mumbai, July 21st 2022: Institutional investments in Indian real estate in Q2, 2022 (April-June) grew marginally to USD 966 million from Q1 2022 (Jan-March). However, it is noteworthy that Institutional investment maintained momentum despite the backdrop of global economic and geopolitical headwinds. In Q2 2022 deal volumes reflect a resilient response to these changes, registering a marginal rise of 2% over the immediate quarter.
Investments grew marginally
Source: JLL Capital markets
2/3rd share of investments in office sector followed by entity level investments at 11%
“The rebound in the office sector with a return-to-office and renewed leasing led to improved investment sentiments as reflected in USD 652 million capital flow during Q2 2022. There was a preference for core assets indicating an inclination for operational rent-yielding assets. We are also seeing Grade A developers attracting more and more entity-level investments. Entity-level investments by offshore funds with one of the leading developers accounted for an 11% share of deal volume in Q2. In light of current macroeconomic factors and limited availability of institutional grade core assets in the market for sale, we expect this trend to continue. Data centres and warehousing remain sectors to watch out for as we are expecting to see multiple land/portfolio acquisitions and strategic partnerships in the coming quarters,” said Lata Pillai, Head of Capital Market, India, JLL
Office sector accounts for 67% share in Q2 2022 at USD 652 million
Assest class | Q2 2021 (USD mn) | % share | Q2 2022 (USD mn) | % share |
---|---|---|---|---|
Office | 231 | 17% | 652 | 67% |
Entity | - | - | 110 | 11% |
Alternatives (Data centres) | - | - | 64 | 7% |
Residential | 78 | 6% | 60 | 6% |
Retail | 278 | 21% | 51 | 5% |
Warehousing | 742 | 56% | 29 | 3% |
Total | 1,329 | 100% | 966 | 100% |