National – July 22, 2022 – CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, today announced the
findings of its report, ‘India Market Monitor – Q2 2022’. The report highlights the growth, trends, and dynamics across all
segments of the real estate sector in India.
According to the report, capital inflows in H1 2022 jumped by 42% over H2 2021 and 4% compared to H1 2021. On a
quarterly basis, the capital inflows in Q2 2022 stood at USD 2 billion, an increase of 47% over Q1 2022. Delhi-NCR,
Chennai, and Mumbai dominated total investment quantum in Q2 2022, with a cumulative share of about 90%.
Institutional investors led investment activity with a share of nearly 65%, infusing liquidity primarily in brownfield assets,
whereas developers (31%) continued to prioritize greenfield investments. About 70% of the capital inflows were deployed
for pure investment or acquisition purposes during Q2 2022, while 30% were committed to development or greenfield
The report also highlighted the office sector’s dominance of
investment activity, with a share of about 57% – followed by
land/development sites (30%) and the retail sector (10%). Foreign
investors accounted for about 67% of the total investment volume in
Q2 2022, with investments from Canada garnering a 59% share.
“In 2022, real estate investments are expected to grow further on the
back of a strong rebound across asset classes. With total capital
inflows reaching USD 3.4 billion in H1 2022, we expect these
investments to rise by over 10% versus the 2021 benchmark.
Greenfield assets are likely to witness a strong investment uptick.
However, we might feel the impact of volatility in the global
investments market,” said Anshuman Magazine, Chairman & CEO
- India, South-East Asia, Middle East & Africa, CBRE.
“Leading developers have raised over INR 18,700 crore (USD 2.4
billion) through the QIP and IPO routes since FY2019 – something
we expect to continue in 2022. With improved financials and stronger
residential sales in 2022, we also foresee leading developers being in
a much better position to negotiate with institutional investors for
funds at a comparatively lower cost,” said Gaurav Kumar and
Nikhil Bhatia, Managing Directors for Capital Markets and
Residential Business, CBRE India.
“Investments in alternate assets, particularly data centres, could gain further traction amidst rising digitalisation and strong
policy push towards a digital economy; sustainability and ESG practices would emerge as stronger themes in investment
strategies.” added Gaurav Kumar and Nikhil Bhatia.