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Institutional investments in real estate remained strong during Q1 2023 at USD1.7 Bn, led by office sector, lending an optimistic outlook for the year. The office sector continued to drive the investment inflows accounting for 55% of the total inflows during the quarter, followed by residential sector at
22% share. Investment inflows in office sector rose by 41% YoY at USD0.9Bn, led by select large deals. Owing to he strong growth prospects in office sector, key institutional investors are entering into strategic partnerships to strengthen their presence and expand their office portfolio in India.

Investments from domestic investors rose 4X YoY during the quarter. Domestic investors remained committed towards residential assets during the quarter, despite higher lending rates. On the other hand, global investors remained inclined towards office and industrial assets, and dominated the total investment inflows at 76% share. Larger markets such as Delhi-NCR and Bengaluru attracted 1/3rd of the total investments during the
quarter, led by increased activity in these markets. However, majority of the inflows (63%) were through multi-city deals.

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