Institutional investments to cross $5 billion in 2022: JLL
Real Estate

Institutional investments to cross $5 billion in 2022: JLL

According to Jones Lang LaSalle Inc (JLL) report, institutional investments might cross $5 billion in 2022, which the real estate sector witnessed in 2017-2020.

As per the report, the first nine months of 2021 has witnessed 31 deals, compared to 19 during the same period last year. Unless a few large portfolio deals are not closed by the end of this year, the annual investments are expected to be between $3.8-4 billion.

Besides commercial space, investors also allocated fresh capital in the residential sector.

CEO and country head of JLL, Radha Dhir, said that the investments almost doubled year-on-year (YoY) during the first nine months of 2021 at $2.9 billion. Real estate investment trust (REIT) continued to raise low-cost debt and use the proceeds to acquire assets and attract valuation.

Post the second wave of the Covid-19 pandemic, the net absorption for the third quarter (Q3) of 2021 at 5.9 million sq ft was the maximum.

Residential sales were over 77,000 during the first three quarters of 2021, with an increase of 47%, compared to the same period last year. New residential launching of around 93,000 units, with 38% growth compared to the same period last year.

As per the report, 2022 will register 20-25% annual growth in sales compared to the last year due to affordable synergy and positive market conditions. With strong end-user demand and conducive market conditions, the average annual sales are expected to reach the average quarterly sales of 35,926 units. If 2022 witnesses positive economic conditions, the average quarterly sales may reach 39,891 units.

The increased demand for housing and rising input costs might result in a 5-7% price increase in some residential micro-markets.

The office real estate sectors might witness 30-35% annual growth in 2022 on the back of growing technology and digital transformation from global corporations.

Other sectors like Banking, financial services and insurance (BFSI) and Consulting might see some improvement, along with other sectors, including e-commerce, manufacturing, and healthcare.

Demand for managed spaces will push the growth of the flex space segment, which will account for 15-20% of all leasing activity in 2021 and continue in 2022.

Image Source

According to Jones Lang LaSalle Inc (JLL) report, institutional investments might cross $5 billion in 2022, which the real estate sector witnessed in 2017-2020. As per the report, the first nine months of 2021 has witnessed 31 deals, compared to 19 during the same period last year. Unless a few large portfolio deals are not closed by the end of this year, the annual investments are expected to be between $3.8-4 billion. Besides commercial space, investors also allocated fresh capital in the residential sector. CEO and country head of JLL, Radha Dhir, said that the investments almost doubled year-on-year (YoY) during the first nine months of 2021 at $2.9 billion. Real estate investment trust (REIT) continued to raise low-cost debt and use the proceeds to acquire assets and attract valuation. Post the second wave of the Covid-19 pandemic, the net absorption for the third quarter (Q3) of 2021 at 5.9 million sq ft was the maximum. Residential sales were over 77,000 during the first three quarters of 2021, with an increase of 47%, compared to the same period last year. New residential launching of around 93,000 units, with 38% growth compared to the same period last year. As per the report, 2022 will register 20-25% annual growth in sales compared to the last year due to affordable synergy and positive market conditions. With strong end-user demand and conducive market conditions, the average annual sales are expected to reach the average quarterly sales of 35,926 units. If 2022 witnesses positive economic conditions, the average quarterly sales may reach 39,891 units. The increased demand for housing and rising input costs might result in a 5-7% price increase in some residential micro-markets. The office real estate sectors might witness 30-35% annual growth in 2022 on the back of growing technology and digital transformation from global corporations. Other sectors like Banking, financial services and insurance (BFSI) and Consulting might see some improvement, along with other sectors, including e-commerce, manufacturing, and healthcare. Demand for managed spaces will push the growth of the flex space segment, which will account for 15-20% of all leasing activity in 2021 and continue in 2022. Image Source

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