India’s Office Real Estate Receives Record Institutional Investments of US$ 1.8 Billion - News

India’s office real estate sector had record institutional investments of US$ 1.8 billion in Q2 2023, the most in the previous 10 quarters, as per Colliers’ data, representing a 2.5-fold increase year-on-year for H1 2023, bringing the total to US$ 2.7 billion.
The sector garnered 74 percent of investment inflows for H1 2023, outstripping the residential sector, which attracted only 12 percent, while overall institutional investment inflows into the Indian real estate market increased by 43 percent year-on-year, totaling US$ 3.7 billion in H1 2023. 
The robust fundamentals of real estate asset classes (office and residential properties) and the favorable domestic economic outlook have contributed to encouraging developments in institutional investment inflows. Institutional investors have expressed interest in the office sector because of growing opportunities, resilient demand, and high growth prospects over the next 2-3 years.
Over the last five years, factors such as strong demand for Grade A office space, a solid supply pipeline, enhanced transparency, and the availability of exit options through Real Estate Investment Trusts (REITs) have boosted foreign investments in the office sector. Global investors continue to be bullish on the Indian office sector, with a growing interest in high-quality, income-yielding Grade A office properties. Investors are building massive joint venture platforms in order to deploy cash and participate in these developing office projects.