Institutional investments in property rise by 43%, Delhi-NCR records high demand: Colliers
The report also reveals that the Office sector attracted investments at $2.7 billion during 2023 a 2.5 times surge from the previous year.
- Republic Business
- 2 min read
Institutional investment market in Delhi-NCR rose by 58 per cent as compared to the previous year, according to Colliers India. The investment accounted for an amount of $1.07 billion in the first six months of 2023.
Source: Colliers
"Office sector is witnessing a re-calibration globally, and hence the decision to invest is also taking longer. Further, interest rates and inflationary pressures are also temporarily keeping the investors in wait-and-watch mode as the investors reprice the global macro risks," said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.
The appetite to invest remains strong with newer funds looking at entering the Indian market. Apart from owning yielding assets, there is a renewed interest in the residential sector as well, Gupta added.
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Details of the report and city-wise data
The report was released by real estate consultant Colliers India, which noted that the institutional investment inflows to India rose by 43 per cent and stood at $3.7 billion in the first half of 2023.
Source: Colliers
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In the city-wise bifurcation, the investments in the Delhi-NCR market witnessed the most with 58 per cent to $1,079 million in the January-June period as compared to $681.5 million a year ago.
Investments in residential assets increased 5 times at $0.4 Bn. In the Mumbai Property market, institutional investments rose 90 per cent to $ 348.3 million from $ 183.7 million. Bengaluru recorded no investment in Q2 2023. Institutional investments in Bengaluru real estate market jumped multi-fold to $ 196.6 million square feet in January-June from $24.3 million square feet a year ago.
Investment in Delhi NCR rose 27 per cent to $698. Hyderabad received $127.3 million during the period under review as against nil in the same quarter last year
Investment in the Chennai Property market, fell 64 per cent to $ 85.4 million from $234.8 million. The investments include fund inflows by family offices, corporate groups, foreign banks, proprietary books, pension funds, private equity, real estate fund-cum-developers, foreign-funded NBFCs and sovereign wealth funds.