Institutional Investment In Real Estate May Fall 20 Percent
According to Property Consultant JLL India, Institutional investments in real estate might fall 20 percent to USD 4 billion during 2021 due to higher inflows of funds in 2020. The institutional investment rose from USD 1,534 million to USD 2,977 million in 2020.
JLL asserted that "Annual investments of 2021 are estimated to be around USD 3.8-4 billion unless a few big portfolio deals get canceled at the year-end."
Institutional investments endured crossing the USD 5 billion mark in 2020 due to large portfolio deals worth USD 3.2 billion during the last quarter of the year. Marking that 2021 saw broad-based recovery during the first nine months as against the deals during the 2020 period.
JLL India expects future investments to pass over the USD 5 billion mark observed by Indian real estate yearly during 2017-2020. The institutional fund flow comprises investments by family offices, foreign corporate groups, foreign banks, proprietary books, pension funds, private equity, real estate fund-cum-developers, foreign-funded NBFCs, sovereign wealth funds, and anchor funds.
JLL said that "Investors, apart from the office sector, also administered new capital in the residential sector, arranging a quick comeback, while warehousing and data centers continued captivating investments."