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Real Estate Investment Reaches $3.4 Bn In H1 2022: CBRE

Foreign investors accounted for over 67% of total investment volume in Q2 2022 while the Office sector dominated investment activity with a share of about 57%

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The latest report from CBRE South Asia titled ‘India Market Monitor – Q2 2022’ shows that the capital inflows in H1 2022 jumped by 42 percent over H2 2021 and 4 percent compared to H1 2021. On a quarterly basis, the capital inflows in Q2 2022 stood at $2 billion, an increase of 47 percent over Q1 2022. Delhi-NCR, Chennai, and Mumbai dominated total investment quantum in Q2 2022, with a cumulative share of about 90 percent,  it said. 

Institutional investors led investment activity with a share of nearly 65 percent, infusing liquidity primarily in brownfield assets, whereas developers (31%) continued to prioritize greenfield investments. About 70 percent of the capital inflows were deployed for pure investment or acquisition purposes during Q2 2022, while 30 percent were committed to development or greenfield projects, it said.

The report also highlighted the office sector’s dominance of investment activity, with a share of about 57 percent - followed by land/development sites (30%) and the retail sector (10%). Foreign investors accounted for about 67 percent of the total investment volume in Q2 2022, with investments from Canada garnering a 59 percent 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 percent 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.


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