Industrial and logistics assets received inflows of 0.2 USD billion, accounting for about 16% of total investments. Investment in the retail sector was the highest since the start of the pandemic. The retail sector attracted the second-highest share of investments at 23%, backed by one major transaction. The office market has made a comeback in terms of investments, with occupiers continuing to see it as a stable income-accruing asset class. This shows immense confidence of investors in the sector”. From a city level, Mumbai continues to be the market leader, with a share of 25% in total investment inflows. Investors, both domestic and global, are appearing bullish on Indian real estate supported by pro-growth government policies with a long-term view to develop and hold assets. Piyush Gupta, Managing Director, Capital Markets & Investment Services, Colliers India, said, "Real estate sector has undergone positive structural changes and performance indicators reflect strong come back across Residential, Office, Industrial, Logistics sectors, with newer themes around technology and digital emerging. This shows a resurgence in the confidence of domestic investors. Interestingly, after a drop in 2020, the share of domestic investments has reached 30%, almost the same as pre-pandemic levels.
Investments were primarily driven by foreign investors, which accounted for about 70% of the inflows during the quarter. Institutional investments in Indian real estate touched 1.1 billion during Q1 2022, doubled up from the same period last year with the opening up of the economy post the third wave of Covid -19 infections, and an improvement in investors’ sentiment has led to surging investments, compared to the prior quarter.