Institutional investment notes 17% to $4 bn in 2021

According to Colliers India, institutional investments dropped by 17% year-on-year to $4 billion in 2021 due to lower inflows in the office segment. It dropped from $4,833 million in 2020 to $4,033 million in 2021.

According to data, institutional investments in the office sector dropped from $1,199 million in 2020 to $1,248 million in 2021. The inflows in mixed-use development projects declined to $182 million from $1,616 million.

Retail assets also witnessed a marginal downfall from $79 million to $77 million.

The industrial and logistics sector received $1,130 million institutional investment in 2021 and an increase from $195 million in 2020.

The institutional investments in the housing sector increased to $919 million from $386 million, and the inflows increased to $453 million from $359 million.

Colliers India said that the industrial and logistics sectors are attracting strong operator and investor interest due to increased demand from e-commerce and third-party logistics post-pandemic.

It said that the private equity funds in the real estate housing sector are looking at providing capital for fresh investments and restructuring the existing loans of banks and non-bank financial companies (NBFCs).

The luxury housing sector accounts for 35% of the total investment, while the rest are from the mid-income and affordable housing sectors.

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