“Investors are expected to remain in a wait-and-watch mode, and caution and risk aversion are expected to drive the dominant behaviour of institutional real estate
investors over the next few quarters. The year 2020 will be one of redemption, as the world recovers from one of its most challenging periods in recent history,” said Ramesh Nair, CEO and country head, JLL India.
The impact of change in the investment climate was reflected in the asset allocation, as investors parked more funds in secure and stable office spaces. Investments in the office sector rose to $2.9 billion in FY20 from $1.8 billion in FY19. The Mumbai Metropolitan Region’s investments share grew to 43 per cent of national investments in FY20 from 23 per cent in FY 2018-19.
“The current situation is extremely fluid and it is still too early to provide a detailed, quantitative assessment of the Covid-19 impact on economic activity, industries, and the real estate market. However, office space, followed by warehousing, could witness the return of investments, while the residential sector is likely to revive with government support and concessions,” said Samantak Das, executive director and head of research at JLL India.