Indian real estate sector is estimated to have increased its investment by 9 percent to Rs 43,780 crore during this calendar year on higher inflow from foreign funds, according to global property consultant Colliers. Forty-six percent of the total inflow is towards the office properties receiving nearly Rs 20,000 crore this year.
Foreign funds accounted for about 78 percent of the total investments in 2019. During 2020, Colliers proposes inflows of $6.5 billion (Rs 46,170 crore) into the Indian real estate sector.
Colliers International is a Canada-based global commercial real estate services organization with approximately 17,000 employees in more than 400 offices in 68 countries. Sankey Pandey, managing director and chairman at Colliers, says, “We recommend investors to look at opportunistic assets including under-construction office assets, supported by strong demand dynamics in information technology (IT)-led markets such as Bengaluru, Hyderabad, and Pune, offering ample opportunities to investors.”
During 2020-2023, Colliers has predicted an annual average gross absorption at 52 million sq ft across the top seven cities, surpassing the gross absorption of the preceding five years by 12 per cent.
The interest in office equity is backed by sturdy demand and rental appreciation. 46 per cent of the total inflows have been accounted by Commercial office assets. Investors are expected to remain focused on acquiring the assets over the next 3 years.
Bengaluru emerged in terms of garnering investments with an investment of USD 655 million (Rs 4,650 crore) during 2019, overtaking Delhi-NCR on the second spot. It should continue to rank among the most attractive markets alongside Mumbai and Delhi-NCR.
Mumbai has been the most sought after investment destination in the country due to a wide range of asset classes, providing diversification to investors’ portfolio. It also continues to be at the forefront of investments with a 25 per cent of the total investment inflows in 2019.