Institutional Investment In Real Estate Up Slightly To $2.93 Billion In Jan-Jun: JLL India

According to property consultant JLL India, the country's property sector has attracted USD 2,939 million worth of investments across 22 deals during H1 2023. 

Institutional investment in real estate rose marginally during January-June this year to USD 2.93 billion as investors continue to have faith in the sector despite global headwinds, according to JLL India.

The investment stood at USD 2.88 billion in the year-ago period.

"Institutional investors have continued to pose faith in the Indian real estate sector despite the global headwinds including uncertainty over economic growth and geopolitical tensions. The rise in investment inflow is an indication of the growth opportunities as India continues to emerge as a bright spot among international markets," JLL India said.

According to property consultant JLL India, the country's property sector has attracted USD 2,939 million worth of investments across 22 deals during H1 2023. 

Investment pattern continues to be robust and is expected to cross USD 5 billion in this calendar year, which has been the annual trend pre-covid and in 2022.

Platform fund commitments have not been included in the total investment volumes and have been analysed separately, JLL said.

As per the data, institutional investments in office assets increased to USD 1,927 million in January-June from 1,056 million in the corresponding period of last year.

Residential segment attracted USD 512 million in the first half of this year as against USD 429 million in the year-ago period.

Investments in warehousing assets rose to USD 366 million from USD 203 million. Hotels attracted USD 134 million as against nil in the same period last year.

Data centre, retail and mixed use projects did not receive any investment in January-June this year as against USD 499 million, USD 301 million and USD 396 million, respectively, in the same period last year.

"H1 (January-June) 2023 witnessed a significant increase in the domestic capital to 44 per cent of the total investment, compared to 18 per cent in 2022. Largest amount of investment has come from APAC region with 74 per cent share of the total foreign investments, the remainder was by Americas," JLL said.

Lata Pillai, Managing Director and Head, Capital Markets, India, JLL, said investor confidence in Indian real estate is increasing steadily. 

"Despite the looming fear of recession in the US economy and global headwinds, H1 2023 clocked investments close to USD 3 bn, about 2% higher than the same period last year. This reflects the confidence of investors in the sector's growth prospects and investor community's confidence on Indian real estate," she said.

The office sector witnessed robust investments close to USD 2 billion with numbers surpassing the 2023 office sector numbers, Pillai said.

"The last few years have witnessed core assets changing hands between investors which is an indication of a maturing market. Another big development this year has been the launch of India’s first retail REIT. The number and spread of the domestic investors have been extremely healthy for this initial public offer," Pillai said.

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