In the first nine months (January to September) of 2021, investments in the residential sector stood at $420 million, surpassing that of the whole of last year, according to a report by real estate consultant Colliers.
Investments have increased due to a higher inclination to own homes, low interest rates and steady prices. Also, investors are seeking a buy-in in the asset class, especially in the near-completion stage.
“The year 2021 was a watershed moment for real estate sector. We have now learned to live with uncertainty. Gross absorption in 2022 should be about 15-20 per cent higher than this year as occupier confidence is back in the market. In terms of global capital chasing real estate, the office will continue to remain a dominant sector, ” said Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers. Occupier confidence has improved in the latter half of 2021 with occupiers closing large office deals. From the second half of 2021, technology players and flex space operators have been taking large spaces. Occupiers who had earlier focused on renewing deals are now looking at new leases.
“Moreover, the centre’s new warehousing policy has the potential to transform the warehousing sector to make it more competitive,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.
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