The residential and warehousing sectors are likely to see increased investments from investors over the next few quarters. In Q3 2021, foreign and domestic investors invested in residential projects in cities like NCR, Mumbai, Hyderabad and Chennai. During the quarter, large, listed developers focused on lowering debt and
expanding their portfolios while launching new projects and acquiring distressed assets.
From Q3 2021 onwards, the residential sector has already seen an uptick in housing sales led by pent-up demand from the last few months, and other factors. To propel demand during the festive season, banks have reduced home loan rates. This will spur demand across several segments. Meanwhile, significant demand for affordable housing and growing investments in new projects should increase supply in Tier 1 markets like the Mumbai Metropolitan Region, National Capital Region and Bengaluru.
“The third quarter has evinced significant Investor interest, buoyed by ample liquidity and with the easing of travel restrictions has driven significant activity in property markets across Asia Pacific. In India, residential sector has performed very well with record sales across markets helping developers to deleverage and acquire new opportunities. The real estate sector has seen the resolution of distressed situations and investors across capital stack be it Special Situations, Income Generating sustainable assets, Private Credit are finding Indian opportunity attractive for the long term”, said Piyush Gupta, Managing Director, Capital Markets and Investments Services, Colliers India.
Industrial and Warehousing fast growing
During Jan-September 2021, industrial and warehousing assets attracted solid investments of about USD900 million from investors. Leasing in warehouses in anticipation of the ongoing festive season and the continued demand from e-commerce companies, are making warehousing assets attractive to investors. Land acquisitions of about 35-50 acres occurred primarily on the outskirts of Tier 2 cities, such as Pune, Indore, Kochi, Hyderabad and Kolkata.
Emerging asset classes such as data Centers and life sciences gaining traction
During Q3 2021, Ivanhoé Cambridge and Lighthouse Canton invested USD100 million in the Life Sciences R&D facilities in Hyderabad, in a first of its kind investments by a foreign investor in life Sciences.
During Jan-September 2021, data centers saw investments of about USD235 million, with corporates tying up with global data center providers. Demand for data centers in India is growing. Colliers expects total colocation data centre stock to reach 20 million square feet by 2023, led by local and global data centre developers, from 9.5 million square feet at present.
