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Capital inflows in Indian real estate reach $3.4 billion in H1 2022: Report

All about the National Capital Region Planning Board (NCRPB)

Capital inflows in India’s real estate jumped by 42% in the first half of 2022 over the second half of 2021 (H2 2021) and 4% compared to H12021, reaching $3.4 billion, shows a report by CBRE South Asia.  The report, India Market Monitor – Q2 2022, highlights the growth, trends, and dynamics across all segments of the real estate sector in India.

On a quarterly basis, the capital inflows in Q2 2022 stood at $2 billion, an increase of 47% over Q1 2022. Delhi-NCR, Chennai, and Mumbai dominated total investment quantum in Q2 2022, with a cumulative share of about 90%.

Institutional investors-led investment activity with a share of nearly 65%, infusing liquidity primarily in brownfield assets, whereas developers (31%) continued to prioritise new 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 new projects, the report showed.

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.

“In 2022, real estate investments are expected to grow further on the back of a strong rebound across asset classes. With total capital inflows reaching $3.4 billion in H1 2022, we expect these investments to rise by over 10% versus the 2021 benchmark. Greenfield assets are likely to witness a strong investment uptick. However, we might feel the impact of volatility in the global investments market,” said Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle-East & Africa, CBRE.

“Leading developers have raised over Rs 18,700 crore through the QIP and IPO routes since FY2019 – something we expect to continue in 2022. With improved financials and stronger residential sales in 2022, we also foresee leading developers being in a much better position to negotiate with institutional investors for funds at a comparatively lower cost,” said Gaurav Kumar and Nikhil Bhatia, MD for capital markets and residential business, CBRE India.

 

Investment outlook

Office

Record leasing activity drives the sector, positive leasing momentum to gain further strength.

 

Outlook

 

 

Residential

After scaling another sales peak in Q2 2022, sector poised for a strong 2022

 

Outlook

 

 

Industrial & Logistics

Resilient sector poised for sustained growth.

 

Outlook

 

Retail

Sector back on growth trajectory

 

Outlook

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