Rapid flow of investments in realty

Investments touch US $340 crore mark
Of the total investments, 67 per cent are from overseas

The flow of investments is continuing at its frenzy. The realty sector, which faced upheavals during Covid-19 period, is back on the rails. In the process, flow of investments to this vital sector is on the rise. The investments in this sector crossed US $ 340 crore, according to the latest development. It is significant to note that 67 per cent of the total investments are from the overseas.

According to the CBRE South Asia Private Limited, a renowned consulting agency, in its India Market Monitor –Q2-2022 report, said the investments are up by 42% on a half-yearly basis and 4% on year on year basis. On a quarterly basis, the capital inflows in Q2 2022 stood at USD 2 billion, an increase of 47% over Q1 2022. Institutional investors led investment activity with a share of nearly 65%, infusing liquidity primarily in brown field assets, whereas developers (31%) continued to prioritize green field investments. About 70% of the capital inflows were deployed for pure investment or acquisition purposes during Q2 2022, while 30% were committed to development or green field project.

The report also highlighted the office sector’s dominance of investment activity, with a share of about 57% – followed by land/development sites (30%) and the retail sector (10%). Foreign investors accounted for about 67% of the total investment volume in Q2 2022, with investments from Canada garnering a 59% share. Leading developers have raised over Rs 18,700 crore (USD 2.4 billion) through the QIP and IPO routes since FY2019 – something we expect to continue in 2022, according to Gaurav Kumar and Nikhil Bhatia, Managing Directors for Capital Markets and Residential Business, CBRE India.

“Investments in alternate assets, particularly data centers, could gain further traction amidst rising digitalisation and strong policy push towards a digital economy; sustainability and ESG practices would emerge as stronger themes in investment strategies,” added Gaurav Kumar and Nikhil Bhatia. Housing sales jumped 121 per cent in second quarter of 2022.