Industrial and logistics sector tops investment chart in 2021
01 Feb 2022
In 2021, the most sought-after segment was the industrial and logistics sector, with investments reaching a five-year high of $1.1 billion, a fivefold increase from 2020.
Owing to increased demand from e-commerce and 3PL players following the epidemic, the industry has attracted a lot of interest from operators and investors.This growth momentum is projected to continue in 2022 as big global investors and developers continue to expand their footprint in close proximity to high-demand locations throughout Tier 1 and 2 cities.
In 2021, the total institutional real-estate investment volume was $4 billion, a 17 per cent decrease year over year. Capital flows, on the other hand, came on the back of a broad-based rebound across most asset classes and locations, with the number of deals more than doubling from 2020. The industrial and warehousing sector accounted for half of all investment in 2021, while the office sector drew the most money ($1.2 billion), contributing to 31 per cent of overall investment. This reinforces the sector's resiliency and long-term growth story.
The share of single city agreements increased twofold in 2021 compared to the previous year, demonstrating the growing preference of investors for select high-quality properties in key areas. Mumbai dominated the investment pie in 2021 with a 21 per cent share, because of increased investments in select luxury residential developments and data centers. Foreign private equity investors continued to dominate investment volumes, although domestic funds have shown increased confidence in comparison to the previous year.
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