New Delhi: Institutional investments in the Indian real estate sector have more than trebled Rs 1,40,000 crore during 2014-2018 as against Rs 46,500 crore during 2009-13, according to a report by property consultant JLL and Confederation of Indian Industry (CII).
“India has gradually transformed into an investment destination of international repute post the global financial crisis and real estate and infrastructure have played a vital role. Within the space, adoption of technology coupled with policy reforms is one of the key factors for investors to consider greater participation,” said Ramesh Nair, CEO & Country Head, JLL India.
Commercial real estate segment witnessed most of the institutional investments in last ten years. There has been a rise in the construction of environmentally sustainable buildings. The demand from occupiers for such buildings has provided strength to this trend.
With better sustainability features, Grade-A office buildings with single ownership and limited supply have made global investors close big deals. However, lower availability of high-quality properties has led to big investors looking at entity level deals. This has led to extended investment cycles. Owing to this, the share of investments for office properties declined during first six months of 2019 as against the same period the last year.
“Investment strategies have shifted to long-term partnerships from being merely opportunistic. There has been a rise in investments in the past decade. Institutional investments in real estate in H1, 2019 stood at Rs 19,500 crore, reflecting continued momentum of capital infusion. The investment climate, however, in the first half of 2019 was uncertain. Initially, this was due to the NBFC default crisis and later due to general elections,” said Samantak Das, Chief Economist and Head of Research & REIS, JLL India.