Colliers has released its ‘Asia Pacific Market Snapshot | Q3 2022’ report, which shows that most major real estate markets across the region have continued to perform well in the third quarter, despite the loss of some growth momentum in the face of difficult macroeconomic conditions marked by high inflation and rising interest rates.
In India, investments in the commercial office sector saw a revival during January-September 2022, jumping 53 per cent from the same period last year. Overall, total investments in Indian real estate touched $3.6 billion in January-September 2022, registering a hike of 18 per cent YoY.
Piyush Gupta, Managing Director, Capital Markets and Investment Services, Colliers India, has said, “The capital inflows in Indian real estate continue to flow in, as long-term sustainable growth story remains intact. Further, the trend in residential sales is reflective of positive long-term structural change in the sector. Investments in India are getting more broad-based with increased participation from domestic investors. The newer avenues are evolving like fractional ownership, AIFs, pooled investment structures are being developed providing depth to both investors and developers.”
Rising absorption rates in the residential, office and logistics segments underlined the buoyancy in India’s real estate market. Investments in the office sector accounted for almost half of the total investments. India’s commercial office segment is back on investors’ radar led by increased occupier confidence in the market. During 2022, office leasing is likely to cross 50 mn sq feet across the top six cities, surpassing the highs seen in 2019. At the same time, the residential sector too has performed well, led by a high inclination to own homes, comparatively low-interest rates and offers during the festive season. The industrial and logistics segments will be supported by the planned influx of nearly USD20 billion in investments into the manufacturing sector.
Vimal Nadar, Senior Director, Research, Colliers India, says “Overall, domestic investors have become more active in the market, accounting for about 18 per cent of the investments between January-September 2022, from 14 per cent share last year. At the same time, global investors continue to dominate funding activity with higher participation in entity-led deals. However, global investors are on a wait-and-watch mode until recessionary pressures persist.”
