Real estate investors’ confidence remains intact: Savills

Mumbai (Maharashtra) [India], Jul 31 (ANI): Private equity investment inflows into India’s real estate sector were $ 2.7 billion (approximately Rs 14,300 billion) in the first half of 2021, according to the latest research from Savills India.

That equates to 41 percent of the investment inflows the sector saw throughout 2020, suggesting that investor confidence remains intact despite the pandemic-hit slowdown.

“However, with inflows of $ 865 million (rupees 6,300 billion) in the second quarter of 2021, we saw a 54 percent decrease from the year-ago quarter,” the report said.

Despite the widespread teleworking culture, commercial office real estate remained the front runner in the second quarter of 2021, accounting for around 40 percent of the investment pie.

This is backed up by the resilience of investable office real estate during these troubled times, which is reflected in the successful listing and operation of three REITs in India.

While occupancy at the Embassy Office Parks REIT and Mindspace Business Parks REIT fell slightly by one to two percentage points at the end of March compared to December 2020, rents remained stable during this period.

Brookfield India REIT successfully completed an initial public offering with an 8-time subscription and saw strong participation from a diverse mix of fixed investors.

During the first quarter of 2021, the consumption pattern of retail investments of investable quality improved and quickly rebounded to pre-Covid levels in the first quarter of 2020.

“We have seen renewed interest in the retail segment from institutional private equity investors, as the segment accounted for the second-highest share (33 percent) of investment inflows in the second quarter of 2021,” the report said.

Foreign investors such as CPPIB and GIC set up platforms to invest in retail properties in the cities of Kolkata, Mumbai and Pune worth $ 285 million (Rs.2,100 billion). (ANI)