Trust the wait: India’s real estate investment story

Institutional investors have continued to pose faith in the Indian real estate sector despite the global headwinds including uncertainty over economic growth and geopolitical tensions. The rise in investment inflow is an indication of the growth opportunities as India continues to emerge as a bright spot among international markets.

The country’s property sector has attracted over USD2.9 bn/USD2939 mn worth of investments across 22 deals during H1 2023. Average deal size of investments increased by 17% to USD134 mn compared to USD115 mn, an aggregate of the year 2022 according to JLL. Investment pattern continues to be robust and expected to cross USD5 bn in CY 2023 which has been the annual trend pre-covid and in 2022.
 

• H12023 witnessed significant increase in the domestic capital to 44% share of the total investment compared to 18% in 2022

• Office sector remained the most favoured sector with a major share of 66%

• Residential sector attracted investment of USD512 mn across nine deals in H1 2023

• Warehousing attracted investment of USD366 mn i.e.80% higher than H1 2022

• USD2,792 mn of platform commitment announced across 4 deals in H1 2023 to be invested in the next few years

• Successful listing of India’s first retail REITs with 81% of anchor contribution by major domestic insurance companies, mutual funds, and pension scheme