India’s office sector accounts for almost half of real estate investments in Q3

47% of all property investments are commercial office assets.

According to a Savills report, investors remain cautious and during Q3/2022, private equity investment inflows into the Indian real estate sector amounted to US$322 million (INR26 billion), registering a sequential decline of 54%. 

The intensifying inflationary pressures appear to be detrimental to the nascent economic recovery across the world and are weighing on investor confidence in the Indian market as well. 

Here’s more from Savills:

Commercial office assets remained the frontrunner during Q3/2022, garnering about half (47%) of the nationwide real estate investment pie. All the quarterly investment came from foreign institutional investors and was concentrated in core off ce assets in Mumbai. 

Mumbai attracted a majority of investment during Q3/2022, accounting for about a 73% share of total real estate investment. The remaining investments were concentrated in Chennai. While Mumbai attracted investments in offi ce and data centre assets, Chennai’s preferred sectors were residential, industrial and data centre assets.