Institutional investments in Indian real estate touched USD2.6 Bn during H1 2022, a 14% rise from H1 2021 according to the market research. Investors are enthused by the recovery seen across the Indian real estate spectrum, after Covid-19-induced disruptions. The capital market continues to be stable and lenders are much more open to lending in low gearing segments.

Economic activity during the quarter will remain robust with increasing sales into Q2 2022 compared to the preceding quarter.. In addition, we also foresee that for Q3 2022, inflows will be significantly higher than average quarterly inflows of 2021

Capital inflows into the Indian real estate market are expected to continue. Due to the above factors, he Home loan interest rates would be low in India and other emerging markets. Low interest rates will attract more investors into residential sector.

We have observed a noticeable shift in the investment trends. While domestic investors are back in the market, it is foreign investors who are driving many of the larger purchases. This is evident from their allocation to income-yielding assets, such as office and industrial spaces.

During H1 2022, the office sector garnered about 48% of the investments. Investors are seeing encouraging signs of revival in the office sector since late last year. This was followed by the retail sector and alternate assets like data centres, holiday homes and life sciences. This is only set to grow with the development of new technology such as virtual reality (VR) and artificial intelligence (AI).

Mumbai, Delhi and Chennai continued to be the top investors’ choice for H1 2022 with a share of 35%, 11% and 10%, respectively. However, multi-city deals continue to be on the rise, with a 43% in investments during H1 2022. These deals were entity-led for assets across multiple cities.