India’s 3 landmark real estate deals in Q2

The combined value almost reached USD2b.

According to Colliers, India’s real estate sector remained buoyant in Q2 2022, aided by record sales in the residential segment and growing interest in the office and warehousing segments. 

Below are the 3 key deals in the country during the quarter.

Here’s more from Colliers:

The office segment witnessed a rebound in Q2 with the execution of large transactions by notable companies, such as Mastercard, Byju’s and HDFC Bank. The quarter also saw occupiers diversifying into Tier 2 cities and gearing up for expansion plans even as the hybrid-working model continued to be the dominant trend. 

Meanwhile, developers are growing concerned about an overall increase in construction costs as geopolitical trends hamper the global supply chain and push up commodity prices leading to a rise in inflation and higher interest rates. Yet, global institutional investors, such as CPPIB, Bain Capital, GIC, Brookfield and Blackstone, continue to take the long view to invest either individually or via joint ventures in assets around the country. 

Forecast

With a ramp-up in global uncertainties and a slower than expected re-entry of employees back to the workplace, the office sector will remain the key focus in Indian real estate. Residential unit sales may witness a slowdown due to an increase in interest rates. 

The hospitality sector, which is rebounding along with an increase in occupancies, offers an opportunity for investors to acquire marquee assets at both realistic and stressed valuations. Overall, capital flows into the sector are expected to remain strong with acquisitions in annuity assets and credit in the residential segment being the focus areas.