India sees sharp drop in institutional housing funds while office and logistics investments rise
Institutional money poured into Indian housing fell 39% to about $695 million in the first nine months of the year, while office investments jumped 46% to $2.17 billion.
According to Colliers India, institutional investors allocated $694.5 million to housing assets between January and September, a 39% drop from the $1,139.7 million recorded in the comparable period last year. Office investments, however, rose sharply to $2,169.3 million, marking a 46% increase, while industrial and logistics parks saw funding climb 15% to $371.9 million. Retail mall investments plummeted 78% to $85.2 million, and mixed-use projects rose 42% to $1,007 million.
Badal Yagnik explained that residential funds are mainly directed at development projects, whereas office capital targets operational assets. He added that expanding domestic capital depth and rising foreign investment are expected to boost real-estate financing in upcoming quarters.
Why it matters
The shift in institutional capital signals changing risk preferences and could reshape India's real-estate development landscape.
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