The Institutional investors’ fund incursions touched its peak of Rs 11,212 crore which is also the highest third-quarter performance in the past 11 years. This indicates the continued momentum in private equity investments in the Indian property market.
According to the data of Cushman & Wakefield India, the investment volume has increased 9 percent in comparison to a year ago in the first three quarters of 2018 and stand at $5.6 billion (Rs 37,815 crore). This is also a sign of investors high confidence.
During the quarter, the commercial office asset class accounted for nearly two-thirds of the investment volume at Rs 7,140 crore. This is an indication for the continued robust institutional interest in the commercial sector for core and core-plus assets and also for the opportunistic investments in brownfield and greenfield projects.
Anshul Jain, Country Head & Managing Director, Cushman & Wakefield India said that as office space supply and demand witness continues increase, coupled with the emergence of co-working spaces in a phenomenal way, the investor confidence in the sector will continue to remain intact.
He further said that a close watch should be kept on the ongoing NBFC situation which has the ability to tauten liquidity flows to this asset class while the residential showed y-oy growth in 2018.
The investments in the Office sector during 2018 have bettered volumes by 1.3 times for the same period of last financial year that was 2017. By the end of this year, large pipeline of transactions are expected which will create new benchmarks.
Out of all property markets in India, Hyderabad grabbed the maximum attention from institutional investors as this capital city recorded nearly 60 percent of the total investment inflows during the quarter. Mumbai- the financial capital of India stood second with a 22 percent share of the quarterly investment flows.