Colliers India Investments Turbocharged with Focus on Alternate Assets Classes

During H1 2021, private equity (PE) inflow in Indian real estate was noted at USD2.9 billion, more than a two-fold increase from H1 2020. Over the next three years, we expect more capital to be deployed in build-to-core mixed-use, office and logistics assets as more investment platforms are formed between global private equity funds and local developers. We estimate total PE inflows to reach USD5 billion in 2021.

Some of the key highlights from the latest flash report by Colliers Research - ‘Investments Turbocharged with Focus on Alternate Assets Classes’ are:

• Investors continue to scout for either land or assets in under-construction stage, as they look to build their portfolio for a future REIT listing. About 86% of the total investments in the office sector were in land or projects under-construction.
• Investments in retail assets accounted for 29% of the total investments in H1 2021 as investor appetite remained intact for exposure to stabilized retail assets as well as for investments in ground-up developments in partnership with selective developers.
• The increased demand from e-commerce companies for logistics space has in turn resulted in continued interest from institutional investors with inflows of about USD775 million in H1 2021.