Institutional investments in realty decline 17%

New Delhi: Institutional investment in real estate sector fell 17 per cent year-on-year in 2021 to $4 billion because of lower inflows in office segment, according to property consultant Colliers India.

Institutional investments declined to $4,033 million in 2021 from $4,833 million in 2020. Colliers India attributed the fall in investments to conclusion of some large transactions in 2020. As per the data, the institutional investments in office assets fell to $1,248 million last year from $2,199 million in 2020 calendar year. Similarly, the inflows in mixed-use development projects dipped to $182 million from $1,616 million. Retail assets also saw a marginal fall in investments to $77 million from $79 million.

In contrast, industrial and logistics segment received $1,130 million institutional investments in 2021, a sharp jump from $195 million in the previous year. The industrial and logistics investments has been highest in 5 years. Institutional investments in housing sector rose to $ 919 million from $386 million, while inflows in alternative assets (student housing, co-living, life sciences, data centers) grew to $453 million from $359 million. Colliers highlighted that the industrial and logistics segment has been drawing strong operator and investor interest due to increased demand from e-commerce and 3PL (Third Party Logistics) players post pandemic.

In the housing segment, the consultant said that private equity funds are looking at providing capital for fresh investments and also for refinancing/ restructuring existing loans of banks and NBFCs.