Residential Real Estate Investment at Its Highest in 4 Years
According to a report by Colliers India, in 2021, the residential real estate sector has the largest increase in investment in 4 years and doubles from 2020 to 0.9 billion USD. According to the report, capital inflows into the housing segment have increased significantly, doubling year-on-year due to the recovery of this sector and increased capital demand. “Private funds seek to fund new investments in residential projects, as well as to refinance/restructure existing loans from banks and NBFCs. The luxury segment accounts for about 35% of total investment capital, the rest are projects in the middle and affordable income segments. Luxury residential projects have seen an increase in investment in 2021 as demand for larger homes and supervised communities has grown significantly over the past year,” according to the report. Institutional real estate investment volume in general closes at $4 billion in 2021. While this was a 17% year-over-year decline, capital inflows, according to the report, translated into a broad-based recovery in most asset classes, geographies, and a doubling of transactions compared to 2020. Transactions ended in 2020. 2021 has been one of the best years for the logistics and residential sectors, accounting for about half of total investments at around $2 billion, The report adds. In addition, the decline is also noticeable as some major deals close in 2020. 2021 is one of the best years for the logistics and residential sectors, accounting for about half of total investment in around $2 billion, the report added. On the other hand, the industrial and logistics sectors were the most sought after and investments hit a five-year high of $1.1 billion. This number is also more than 5 times higher than 2020. The sector has attracted strong interest from operators and investors due to increased demand from e-commerce and 3PL companies. After the pandemic. According to Colliers India, this growth momentum is expected to continue in 2022, as the world's leading developers and investors continue to expand their footprints near high consumption areas in cities tier 1 and tier 2 “The pandemic has prompted a number of structural trends and will cause lasting changes in the nature of the real estate business in India. Investments in all asset classes posted promising cash flows in 2021, reflecting several opportunities for investors to recalibrate their strategies towards growth sectors. This has been evident in the rapid investment in residential, the growing development of data centers, alternatives, industrial, office as well as the growth of the industry. life science field. There is a reflection of confidence in the industry participating in the growth story and thus developing, building and owning real assets over the long term. Piyush Gupta, Managing Director, Capital Markets and Investment Services, Colliers India said
Tags : Realty Spotlight Colliers India Residential real estate investment capital inflows