Capital Markets Update: Q4 2020
Get a pulse of India's Real Estate Capital Markets with this quarterly report from JLL which cover recent movements in the demand and supply dynamics of the country.
The pandemic led to pull back in investments due to uncertainty over income stability and return to normalcy. However, large global funds took this opportunity to negotiate portfolio deals with developers who offered quality rent yielding assets in cities with a higher presence of global technology players as well as global in-house centres. Institutional investment in Indian real estate staged a smart recovery during Q4 2020 with USD 3.5 billion investments. As a result, 2020 closed with USD 5 billion investments, equivalent to 93% of 2019 transactions (USD 5.4 billion), despite a sudden halt brought on by the pandemic.
GDP growth in 2021 to be one of the highest in the decade
*Note: GDP forecast is for the calendar year
Source: Oxford Economics
The backdrop of economic recovery and return to normalcy is expected to bring visibility to the income stability of rent yielding assets, which will help in asset pricing. Investors are likely to get more decisive and deploy the dry powder aggressively.