Chennai: Investors pumped in a record Rs 17,600 crore in the first quarter in India’s real estate sector, the highest among Q1 inflows since over a decade.
The number was higher than the corresponding period a year ago which stood at Rs 16,528 crore, according to property consultant Cushman & Wakefield. The investment more than doubled on a sequential basis, with foreign investment jumping 81 per cent in the first quarter.
Overall, foreign investors held 64 per cent share in the quarterly investment volume, the report said.
Further, partnerships and platforms set up by foreign investors and Indian counterparts constituted an additional 19 per cent of the total private equity investments during the quarter, said the report.
Majority of the investments made by the foreign investors on their own and at the platform level were targeted at the office segment, which garnered a 54 per cent share, followed by the hospitality segment accounting for a share of 27 per cent.
The residential segment accounted for 20.9 per cent of the overall private equity inflows at Rs 3,697 crore during the quarter.
Office segment accounted for 44.8 per cent of the total investments during the period, with $1.14 billion or Rs 7,925 crore. This was a 30 per cent increase from a year ago, signalling the persistent investment appetite for quality office assets in the country.
There was a three-fold jump in investment in the hospitality segment at Rs 3,950 crore, the report said.
“Higher participation of foreign investors this quarter is a signal towards sustained interest in the country’s real estate story backed by increasing transparency and friendly investment policies. There are bright opportunities in the warehousing and logistics segment with office and retail sectors showing continued traction,” said country head & managing director, Cushman & Wakefield India, Anshul Jain.
Jain said the first successful REIT listing has opened an additional avenue for investors to participate in the momentum visible in office markets while also reinforcing the attractiveness of Indian realty.