Mumbai, Nov 22 (IANS) Nearly seven in 10 (68 per cent) of Asia Pacific investors expect regional economic growth to have a positive impact and India is likely to see heightened institutional real estate investments in 2024, with the momentum accelerating further in 2025, according to a report on Friday.
The share of APAC countries in overall institutional investments in Indian real estate stood at 28 per cent in January-September period this year.
About 69 per cent of APAC respondents intend to allocate more than 30 per cent of their total global assets under management (AUM) to real estate in the next five years, and India looks uniquely positioned to attract both domestic and foreign institutional investments, according to a Colliers India report.
Since 2021, institutional inflows have totalled $19 billion, with investment volumes rising each passing year. According to the report, this growth is fuelled by surging demand across core real estate segments.
While office assets have driven over 40 per cent of inflows during the last four years (2021-24), both industrial and warehousing and residential sectors are now seeing accelerated momentum in recent years,” mentioned the report.
In the first three quarters of 2024, institutional investments in Indian real estate have reached $4.7 billion, accounting for 87 per cent of the inflows in the entire year of 2023.
This momentum also sets a promising tone for institutional investments across real estate asset classes in 2025.
According to Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India, the office sector is likely to have its best year in India, with record absorption fuelled by global capability centres (GCCs) and domestic demand.
“The residential sector is witnessing strong end-user sales. Equity capital in Indian real estate is now more diversified, with an increasing share of domestic capital,” he added.
The office sector will continue to present increased opportunities in developmental assets, while rising and evolving consumption patterns and strong demand from e-commerce and third-party logistics (3PL) players will bolster the industrial and warehousing sector.
“Additionally, with evolving demographic patterns, investments in alternatives such as data centres, senior living, student housing, schools, life sciences, holiday homes etc. will continue to hold immense long-term potential.” said Vimal Nadar, Senior Director and Head of Research, Colliers India.
–IANS
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