Wednesday, February 21, 2024

Real estate investment inflows decline in Hyd

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Real estate investment inflows in Hyderabad reduced in 2023 compared to 2022. Investment inflows in 2023 in city were US$ 127.3 million. This was US$145 million in 2022, as per report by Collier India. There was a year-on-year decline of -12%.
However, institutional investments in Indian real estate sector maintained a steady momentum at US$5.4 billion, rising 10% YoY during 2023. Bengaluru, Chennai, Delhi also saw a decrease in investment inflows. Among metropolitan cities, only Mumbai saw 50% increase in investment inflows by 50% at US$731.9 million.
Domestic investors have emerged as active contributors, contributing 32% of the total real estate investments in 2023, compared to 22% share in 2022. While office market continues to be the frontrunner backed by investments from global players, domestic investors are focusing more on alternative and residential assets.
Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India said, “The investments in Indian real estate are more broad-based, with significant investments coming into education, shared spaces and data centres, adding to a strong domestic upcycle in office, residential and industrial areas. Investors from the APAC region have been showing an increasing appetite for Indian real estate, contributing to about half of the total foreign inflows during 2023. Looking ahead to 2024, investment activity is likely to remain unabated backed by robust domestic economic fundamentals, while a strategic integration of technology and ESG will play out in investment decisions”.

Vimal Nadar, Senior Director and Head of Research, Colliers India said, “As 2023 witnessed record breaking office space leasing activity, global institutional investors remained committed on building office portfolios in India. Office led investments had a commanding 56% share in total real estate inflows in 2023. Along with envisaged momentum in alternative assets, industrial & warehousing, and residential sectors in the next few quarters, office sector will continue to dictate India’s real estate investment ecosystem.”
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