Lifestyle

Institutional investment in real estate dips 28% in first half of 2022: Report

[ecis2016.org] Average deal size in H1 2022 was recorded at $118 million, an increase of 14% when compared to the average deal size in H1 2021.

Institutional investment in real estate stood at $2.3 billion during the first half of the first half of the year 2022 (H1 2022) as against $3.2 billion of investment seen in H1 2021, depicting a decline of 28%, shows a recent report.

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According to the report by Vestian, an occupier-focused workplace solutions firm specializing in commercial, residential, industrial, retail and hospitality sectors, the repeated waves of the pandemic, coupled with increasing inflation and the uncertainty caused by global headwinds, created a greater impact on the Indian market, thus leading to a cautious approach adopted by investors in Indian real estate market.

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Despite the significantly reduced amount of investment in the sector, the average deal size in H1 2022 was recorded at $118 million, depicting an increase of 14% when compared to the average deal size in H1 2021, the report, titled Institutional Investment in Indian Real Estate: H1 2022, showed.

Foreign funds accounted for a lion’s share of 84% in H1 2022, signifying the increased interest of foreign investors owing to ease of doing business and various other reformatory changes in the country in recent times.

Multi-city deals occupied the top rank in institutional investment, its share increasing to 36% in H1 2022 from 30% in H1 2021, while on individual cities basis, NCR accounted for the maximum amount of real estate investment in H2 2022, attracting 21% share of the total investment.

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The commercial assets segment remained the most preferred segment to attract investor interest, accounting for the maximum amount of real estate investment, to the tune of 62% share of the total investment in H1 2022.

Increased investment in commercial sector can largely be attributed to brisk return-to-office momentum, growing number of start-ups leading to a stronger workforce, and a fair pick-up in the retail sector in H1 2022.

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Source: https://ecis2016.org
Category: Lifestyle

Debora Berti

Università degli Studi di Firenze, IT

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