By Aditya Raghunath
Investing.com — JLL’s Capital Markets Update Q1 2021 reports said that the real estate sector in India attracted investment worth $922 million in India in the first quarter of 2021, a 21% growth from the same period last year.
Commercial real estate dominated investments to the tune of $864 million while residential real estate attracted investments worth $58 million.
“Institutional investment momentum continued during the first quarter of 2021, registering 21% growth in volume at $922 million, indicating the sustained investor interest in India’s real estate market,” said Samantak Das, Chief Economist and Head of Research & REIS (India), JLL.
Hyderabad saw the maximum investments at $384 million, or 42% of the total investments, thanks to multiple developments that were launched by the Phoenix Group. Mumbai accounted for 21% of the investments at $193 million thanks to the reduction in stamp duty that was permitted by the Maharashtra government until March 31, 2021.
“The remarkable resilience of the office market and confidence in its long-term growth led investors to chase quality assets available at the core and development stages. We also see the maturing listed REIT market providing an alternative to other asset classes, which lacked income stability,” added Das.
However, the report cautioned that Q2 CY2021 would see a delay in the investment pipeline as the second wave of the pandemic has caused a massive slowdown in economic activity in India.