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Indian real estate attracted around $4.3 billion worth of institutional investments from entities including private equity firms, family offices, pension and sovereign funds during the year 2021. As per ET report,the year 2020 saw a sharp recovery in investments, thanks to two large portfolio deals amounting to $3.2 billion announced in the last quarter of the year. The year 2021 witnessed 57 deals as compared to 27 deals in 2020. Investments in 2021 were spread across various sectors and were much more diversified as compared to the previous year.
The onset of the third wave led to overall restrictions which indirectly impacted the investment momentum during the last quarter of the year. The year 2021 demonstrated investment diversification across asset classes as compared to being lopsided in 2020. One of the distinguishing features of the investments during the year has been the comeback of the residential sector which has seen the second-highest share of 25%. The residential sector attracted 2.3 times investments at $1.08 billion as compared to $460 million in 2020. The renewed interest in the sector has been mainly due to the sharp recovery witnessed with a robust sales growth of 47% during the first nine months of 2021 over the same period of 2020. Investors provided structured funds to the sector as these were closer to the equity returns.