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Institutional investment in realty may grow 4%

Institutional investment in realty may grow 4%
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Institutional investment in realty may grow 4%

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Institutional investment in real estate is likely to rise by four per cent to five billion (Rs 36,500 crore) during this calendar year with investors looking to snap up properties at attractive valuations amid the Covid pandemic, according to property consultant Colliers India.

New Delhi: Institutional investment in real estate is likely to rise by four per cent to five billion (Rs 36,500 crore) during this calendar year with investors looking to snap up properties at attractive valuations amid the Covid pandemic, according to property consultant Colliers India.

Institutional investment in real estate stood at $4.8 billion during 2020. Investment in the Indian real estate sector stood at $2.9 billion (Rs 21,170 crore) during the first six months of 2021 calendar year, more than a two-fold increase from the year-ago period. "We estimate total inflows in 2021 will reach five billion (Rs 36,500 crore)," Colliers India said in a report released on Tuesday.

The consultant said that investors continue to have a healthy appetite for office assets, which accounted for 35 per cent of the total investments in the first half of this year. During January-June this year, the industrial and warehousing sector saw $775 million (Rs 5,657 crore) of investments, the highest in any year since 2016. It's share was 27 per cent to the total institutional investments in real estate. "Investors are viewing the current scenario as an opportunity to snap up properties at attractive valuations," the report said.

The residential sector, which continues to see liquidity challenges, saw only four per cent of the total investments in January-June 2021, with debt deals being the dominant route of investments. In the first half of 2021, data centers saw investments of about $161 million (Rs 1,175 crore), with corporates tying up with global data center providers.

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