Institutional investments in real estate witnessed a decline of 21 per cent in the July-September period on a year-on-year (YoY) basis, data from Colliers India revealed. The data noted that institutional investments in real estate in the period stood at $793.4 million, down from $1,002.1 million investments reported in the same period last year. The real estate consultant, Collier India, released the data on Saturday and attributed this dip to decreased inflows in office assets.
The data further revealed that investment in office assets plunged 89 per cent to $79.1 million in the period, against $694.2 million invested in the July-September period last year, reported PTI. Investments in mixed-use assets also witnessed a 73 per cent fall to $27.2 million invested during the July-September period, down from $100.8 million investment received in the corresponding period a year earlier.
The data, however, pointed out that institutional investments in residential properties increased 47 per cent to $274.6 million in the period, compared $187 million reported in the same period a year ago. Industrial and warehousing assets also witnessed an increase in investments to $340.3 million during the July-September period, up from $20 million investments received in the year-ago period. Alternate assets, including data centres, student housing, senior housing, holiday homes, and life sciences, reported investments worth $72.2 million in the period, compared to zero inflows in the corresponding period a year earlier.
The data noted that institutional investments in real estate declined during the period, but inflows during the January to September period in the year increased by 27 per cent to $4,558.1 million, compared to $3,578.5 million inflows in the year-ago period. In the total institutional investments, foreign inflows contributed 77 per cent.
For the January-September period, inflows in office assets increased by 60 per cent to $2,886.9 million, up from $1,802.8 million in the corresponding period a year earlier. While housing assets saw a twofold increase in investments during the period, industrial and warehousing assets reported a threefold increase in inflows, all on a YoY basis.
However, alternate investments witnessed a decline of 42 per cent in inflows at $230.4 million during the January-September period, against $398.8 million in the year-ago period. While mixed-use properties saw a sharp fall of 90 per cent in inflows, retail real estate failed to attract any investment during the period.