Institutional investment in housing dips in January-September to $695 mn;office assets inflow up at $2.16 billion: Colliers

New Delhi: Institutional investments in the residential segment fell 39 per cent annually to USD 695 million during January-September this year as realty firms prefer to fund projects through internal accruals, according to Colliers.

Real estate consultant Colliers India on Thursday released data for institutional investments in different segments of India's real estate sector.

According to the data, institutional investments in housing assets fell 39 per cent to USD 694.5 million in the first nine months of this year from USD 1,139.7 million in the year-ago period.


Read more: Experion Developers plans Rs 10,000 crore investment to build 3,000 luxury homes, plots in 5 years

However, office assets saw a 46 per cent growth in investments to USD 2,169.3 million from USD 1,482.7 million during the period under review.

Industrial and logistics parks saw 15 per cent growth in investments to USD 371.9 million from USD 324.7 million.

Investments in retail real estate (shopping malls) fell 78 per cent to USD 85.2 million from USD 380 million.

Institutional investments in mixed-use projects rose 42 per cent to USD 1007 million in January-September from USD 707.8 million in the year-ago period.

Read more: Land acquired in last five years offer 1,400 million sq ft of potential development

"While residential investments were largely directed towards developmental projects, office investments were primarily focused on operational assets," said Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India.

"Looking ahead, with evolving preferences across the risk-return spectrum, growing depth in domestic capital is expected to drive real estate investments in India, along with an uptick in foreign investment volumes in upcoming quarters," he added.

"Institutional flow of funds includes investments by Alternative Investment Funds (AIFs), family offices, foreign corporate groups, foreign banks, pension funds, private equity, real estate funds & platforms, foreign-funded NBFCs, listed REITs and sovereign wealth funds.

Elaborating on the office market, Colliers noted that domestic investors played a pivotal role, contributing more than 90 per cent of the institutional inflows in the segment during the first nine months of this calendar year.

"Sustained leasing momentum across high-quality Grade A office assets and long-term demand prospects continue to reinforce the segment's attractiveness amongst investors," it added.

In non-real estate, investments in the hospitality sector jumped to USD 632.2 million from USD 88.2 million, the data showed.