Indian realty’s institutional fund inflow in 2020 seen at $4.8 bn

New Delhi, Nov 3 : The Indian real estate sector is likely to have received institutional funds worth $4.8 billion in 2020, according to a JLL report.
During July-September, India’s real estate market attracted $235 million in capital, growing by 52 per cent quarter-on-quarter (QoQ), showed JLL’s ‘Capital Markets Update: Q3 2020’ report.
“The India real estate sector is expected to draw $4.8 bn of capital in 2020, representing a 8 per cent decline on 2019’s total transactional volume of $5.3 billion,” it said.
According to JLL, investors are most attracted to the country’s office sector, with interest remaining strong throughout the pandemic and the partial relaxation of the lockdown with $200 million invested during Q3 2020.
Concurrently, global investors actively sought asset portfolio opportunities, with two landmark portfolio transactions amounting to a total of $3.6 billion in investment value likely to be concluded in Q4 2020.
In the primary markets, Mindspace Business Parks REIT, India’s second REIT issue, of $600 million was oversubscribed by 13 times in August 2020. The strong response to this REIT indicates a preference for cash flow opportunities in private and public markets, it said.