Institutional investment in real estate grew 9 times in the first quarter (April-June) of the current financial year. In the June quarter, he invested a whopping $1.35 billion, while in the June quarter of 2020, he had invested only 1.357 million.
Threatened real estate sales expected to double in 3-4 years.
For the first time in March 2020, there was a corona crisis in the country. After a few months, when the situation improved, there was a boom in the real estate sector. During the Corona period, large scale house construction took place across the country and this sector became the choice of investors. After the second wave of Corona, there is a possibility of a boom in this sector again. This is the reason why institutional investors are investing heavily in real estate.
According to the report of JLL India, there was a 9-fold jump in investment of institutional investors in this sector in the April-June quarter. In the June quarter, he invested a whopping $1.35 billion, while in the June quarter of 2020, he had invested only 1.357 million. According to JLL India, the main reason for this was the increase in inflow of funds into the warehousing projects.
Largest investment in warehousing
JLL India, in its ‘Capital Markets’ report for the second quarter of 2021, said institutional investors invested $1357 million in real estate during the second quarter of the 2021 calendar year, compared to only $155 million in the corresponding quarter of the previous year. . According to the report, during the April-June quarter, the warehousing sector saw the highest investment of $ 743 million. Whereas in the previous same period it was $ 41 million.
Growth in retail real estate
At the same time, investment in retail real estate stood at $278 million in the second quarter of the current calendar year. Due to this, however, there was no investment in this sector in the same period last year. After the impact of COVID-19, there was a big investment in the property market for offices. This category saw an investment of 231 million during the second quarter of the current year as against $66 million in the corresponding quarter of the previous year.
$2.7 billion in the first half
Radha Dhir, Chief Executive Chairman and Head of JLL India said that despite the second wave of Corona in the first half of the year 2021, an investment of $ 2.7 billion came, which is 53 percent of the total investment in the year 2020. “Investors are adapting to the situation and adapting to the uncertain environment. The easing of the lockdown during the first three months of 2021 also gave investors experience in handling the pandemic.
The future of this sector is likely to be bright
Market experts say that there has been a correction in this sector for years. Global brokerage firm CLSA says that real estate developers are trying to double their sales in the next 3-4 years. At this time a lot of demand is being seen and the affordability has also increased. Debt on real estate has declined by 27 per cent in the last financial year. They are constantly trying to reduce their debt.
Keep an eye on these stocks
CLSA expects a strong uptick in the performance of DLF, Prestige Estates Projects and Sunteck Realty. In a report published in the Economic Times, Nishil Maheshveer of Centrum Broking has named Oberoi Realty, Godrej Properties and Sobha Developers as his three choices. He said that execution is more important in the realty sector. In this respect, Oberoi, Godrej and Shobha companies are good.
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