Decreasing interest of institutional investors in real estate, increased interest in logistics

Institutional investment in the real estate sector fell to $4033 million in 2021 from $4833 million in 2020.

Investment decreased by 17 percent.

The inflow of institutional investment in the real estate sector declined by 17 per cent to $4 billion in 2021 as compared to the previous year. The overall figure has come down due to the decrease in investment in the office space sector. Property advisory firm Colliers India said in its report on Monday that institutional investment in the real estate sector fell to $4033 million in 2021, from $4833 million in 2020.

According to the report, one of the reasons for the decline in institutional investment was that in the year 2020, some major transactions were executed during this period. According to the data, institutional investment in office properties stood at $1248 million in calendar year 2021 from $2199 million in the year 2020. Similarly, investment in mixed-use development projects fell from $1616 million to $182 million.

Logistics receives institutional investment of $113 million

Investment in retail assets also declined marginally to $77 million as against $79 million in 2020. In comparison, the industrial and logistics sector received institutional investment of $113 million in 2021, which is much higher than the previous $195 million. This is the biggest investment of the last five years.

Investor attraction increased in logistics sector

Institutional investment in the housing sector increased from $386 million to $919 million, while investment inflows into alternative assets increased from $359 million to $453 million. Colliers India said that investors are showing attractiveness towards industrial and logistics sectors. The reason for this is the increase in demand from e-commerce and third party logistics.

71% jump in sales in top 7 cities

Home sales in the top seven cities of the country grew by 71 per cent to 2,36,530 units in 2021 as compared to the previous year. However, the demand for houses is still 10 per cent less than the pre-Covid level. Property consulting company Anarock gave this information. According to this, 1,38,350 residential units were sold in the year 2020 and a total of 2,61,358 units were sold in 2019.

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