New Delhi: 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.
“We’re expecting a broad based ‘V-shape’ recovery in the Indian real estate market, but depending on the economic recovery and pandemic response, our estimates have substantial scope for upward revision,” said Ramesh Nair, CEO and Country Head (India), JLL.
