Huge Investments in real estate sector..!? Is this a smart idea..?
As the
indian investment market is going through extreme fluctuations and downturns, many investors especially retail investors are in need of safe investments. In this respect, the real estate sector, which
indians have always traditionally believed in, has received a huge amount of investment in the first 6 months of 2022.
Institutional investments in the
indian real estate sector have risen to around $2.6 billion in the first half of 2022 alone. This is a 14 percent increase over the first half of 2021. After the impact of the Covid-19 pandemic, the
indian real estate sector is experiencing tremendous growth. Especially after the Russia-Ukraine war, the US and
britain raised interest rates, so stock market investments faced excessive volatility. Through this many investors started investing their money in the real estate sector.
In the first half of 2022, increased investment in the
indian real estate sector was driven by the
office sector. The
office sector alone accounts for about 48 percent share, followed by the retail sector with 19 percent share. On a quarterly basis, inflows for Q2 2022 increased from the previous quarter, while registering a 50% growth from the average quarterly inflows of 2021.
Investments in development and operational assets in
india continue to increase. With the current
business environment,
india will benefit more from Asian economies due to increased
capital inflows.
Piyush Gupta, Managing Director,
capital Markets & Investment Services, Colliers
india, said the
indian real estate sector is likely to see both equity and debt inflows thanks to existing and new investment management platforms. Domestic investors, meanwhile, have returned to dominance with a 38% share in H1 2022, up 13% from last year. With this, it is expected that the
indian real estate sector will continue to grow.