Institutional investments in real estate down 21% in Jul-Sep: Colliers

Colliers India on Saturday released data that showed a sharp fall of 89% in investment in office assets to $79.1 million during July-September

Institutional investments in real estate declined 21 per cent in July-September period to $793.4 million due to lesser inflows in office assets, according to Colliers India.

Institutional inflows stood at $1,002.1 million in the year-ago period.

Real estate consultant Colliers India on Saturday released the data that showed a sharp fall of 89 per cent in investment in office assets to $79.1 million during July-September from $694.3 million in the corresponding period of last year.

Funds inflows in mixed-use assets too dipped 73 per cent to $27.2 million during July-September period from $100.8 million in the year-ago period.

However, the institutional investments in residential properties rose 47 per cent to $274.6 million in the third quarter of this calendar year from $187 million in the year-ago period.

Industrial & warehousing assets attracted $340.3 million during July-September as against mere $20 million in the year-ago period.

Investments in alternate assets, which include data centres, student housing, senior housing, holiday homes and life sciences, stood at $72.2 million during July-September period as against zero inflows in the year-ago period.

Despite fall in institutional investments in real estate during July-September period, Colliers India data showed that the inflows during January-September were up 27 per cent to $4,558.1 million as against $3,578.5 million in the year-ago period.

Foreign investments contributed 77 per cent in the total institutional inflows.

Across asset classes, institutional investments in office assets have risen 60 per cent to $2,886.9 million during January-September period from $1,802.8 million in the year-ago period.

Inflows in housing assets jumped more than two-fold to $707.9 million from $276.5 million.

Similarly, investments in industrial and warehousing assets jumped more than three-fold to $690.6 million in January-September from $199.8 million in the year-ago period.

However, inflows in alternate investments fell 42 per cent to $230.4 million from $398.8 million.

Investments in mixed-use properties plunged 90 per cent to $42.3 million from $408.8 million.

Retail real estate has not been able to attract any investment during January-September period this year as against $491.8 million in the year-ago period.