Investments in alternate assets see a new high in 2022

There is a considerable high observed in India’s institutional investments. It has touched around $0.9 billion. Investments in alternate assets have gone as high as 92% in 2022. This is truly a four-fold jump since the numbers received in 2019. This sharp jump is due to investors’ urge to grow their portfolios.

As per recent reports, institutional investments in Indian real estate’s alternate asset accounted for 18% of the inflows during this year.

2022 has seen investors pumping more money into India’s emerging sectors such as data centres, life sciences, etc. Steady returns in some traditional asset classes have made investors opt for diversification of their profiles. This has been brought out in a report by Colliers .

52% of the investments were witnessed in alternate assets, hospitals, data centres, holiday homes, life sciences and other scattered deals. #realestateindia

Office sector has continued to remain dominant in 2022, accounting for 41% share in total inflows. Large deals in the office sector have brought about this high rise. Investors intend to build strong portfolios as this is the year of REITs which ensures any individual or companies whether big or small to form their own pool for investment in real estate. ?However, most of the office deals can be attributed to global investors, who are constantly on the lookout for income-yielding assets (with so much of a downturn happening in the global markets).#reits #reit #indianrealestate

“The investments in Indian real estate have been consistent for the past few years and hence have the potential to grow due to the structural change in demand for capital. Apart from the income-yielding assets, there is a strong performance in the residential, retail, and hospitality sectors, where 2022 witnessed some large transactions and is likely to see more traction in the next couple of years. Performance credit, special situations, portfolio acquisitions, asset reconstruction, and related?structures have been growing and are likely to attract more investments. During 2023, while we may see some postponement in deployment, there is ample dry powder in the market across core assets and alternate assets,” said Piyush Gupta, Managing Director, Capital Markets and Investment Services, Colliers India.

Estimated figure for overall investments in India is USD 4.9 billion during 2022. This is a rise of 20% YoY. Indian realty market has kept institutional investors interested. It has immense growth potential even for the upcoming years. Investors across the globe have taken a beating in every financial, stock and real estate sector, with only hope being provided by India’s #realestate and allied markets.

Global investors are looking to invest in sectors (hopes are high with India’s growing economy) that have high interest rates as high inflation and recessionary concerns along with political tensions in few nations may have dampened fund deployment for them. In order to stand up and get back to their strategies and tactics, investors are going for the long haul.

Present status and statistics show global investors being attracted to the stable demand dynamics across asset classes and opportunities of investment in operational and asset development sectors.

“The share of domestic investment inflows in 2022 has surpassed the share in 2021, accounting for 22% share in total inflows. Residential assets continue to account for a chunk of the domestic investments. Overall, though the total investment inflows are yet to outrun the pre-pandemic levels, investors remain vested in India’s real estate even in challenging times. Large global investors will continue to partner with domestic firms to set up investment platforms,” Vimal Nadar, Senior Director and Head of Research, Colliers India.