Office space made up 50% of all PE investment in real estate, followed by the retail sector, which saw some significant purchases.
According to a Colliers survey, the Indian office market continues to be a preferred asset class for international investors, who spent $3.6 billion on real estate in the first nine months of the year, a rise of 18%.
Office space made up 50% of all PE investment in real estate, followed by the retail sector, which saw some significant purchases.
With a 21% stake, Delhi-NCR experienced the most inflows, followed by Mumbai and Bengaluru.
Abu Dhabi Investment Authority (ADIA) invested Rs1,740 crore in Mindspace REIT, Kotak Investment Advisors and ADIA invested Rs1,600 crore in Embassy REIT, and Actis invested Rs1,550 crore with Rx Propellant in some of the major acquisitions recently reported.
Market reports claim that leading domestic and international funds like Kotak Investment Advisors, ADIA, and Actis are looking to invest more money in rental yield assets in order to diversify their holdings.
Domestic funds have also become more active in the market this year, contributing 18% of investment inflows into Indian real estate, up from 14% during the same period last year.
The forecast for the Indian office market is upbeat notwithstanding the uncertainties surrounding the global economy brought on by European military conflict, supply-chain interruptions, and increasing inflationary pressures. The office real estate market has been on a solid growth trajectory and may reach the 2019 peak by year's end.