According to the report by Colliers, because of the pandemic’s negative effects on the businesses in shopping malls, retail real estate has only garnered USD 77 million in institutional investments by 2021
Institutional investments in retail real estate increased by almost six times to USD 492 million in 2022 as the Covid-19 pandemic had a strong favourable effect on mall commerce, according to Colliers India.
According to the report by Colliers, because of the pandemic’s negative effects on the businesses in shopping malls, retail real estate has only garnered USD 77 million in institutional investments by 2021.
One of the alternative asset classes that gained investment last year was data centres, which had investment of USD 867 million, up by 92 per cent from USD 453 million in 2021. Data centres, the life sciences, senior housing, vacation homes, and student housing are just a few examples of alternative assets.
Given the constant returns in several traditional asset classes, investors seeking to diversify their portfolios are driving the expansion of alternative assets, stated Colliers India. About 52 per cent of the investments in alternative assets went toward data centres.
The office market received a share of 41 per cent of all inflows. From USD 1.32 billion the year before, to USD 1.98 billion in 2022, institutional investments in office assets increased by 50 per cent.
The amount invested in mixed-use developments also increased from USD 182 million to USD 464 million.
However, assets related to manufacturing and warehousing decreased by 63 per cent, from USD 1.13 billion to USD 422 million. The amount of money coming into the residential sector fell by 29 per cent to USD 656 million in 2022 from USD 919 million the year before.
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