institutional investment in realty in 2020 almost equals 2019 levels but recovery narrow based: JLL

New Delhi: The institutional investment in realty industry in 2020 almost touched 2019 levels in the country at about USD 5-5.4 billion.

The last quarter of 2020 saw massive institutional investment at USD 3.5 billion, taking the total for 2020 to USD 5 billion. The total institutional investment in 2019 was USD 5.4 billion.

Around 27 deals were struck in 2020 as compared to 54 in 2019, according to a report by JLL. Office properties accounted for lion’s share of the investments in 2020 at USD 3,102 million. The same was USD 460 million for residential.

The corona pandemic caused pulling back of investments because of uncertainty over the income stability. But big international funds found an opportunity and negotiated portfolio transactions with real estate developers in India. The developers were able to offer quality rent yielding properties in various cities.

The recovery in the post pandemic period has been quite narrow based with just 27 deals being struck in 2020 as compared to 54 in 2019. There were two big portfolio transactions with a value of USD 3.2 billion and they accounted for about 65 percent of the overall in 2020. These transactions by big global funds in the present times of uncertainty go on to validate the potential of Indian realty market for investment. 

 

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