Colliers said institutional investment in real estate fell 37% annually to $822.3 million in the October-December period last year as inflows fell across all asset classes.
According to data from real estate consultant Colliers India, investment in real estate by institutional investors during October-December 2023 was $822.3 million, compared to $1,299.4 million in the same period last year.
Capital inflows to the office segment decreased 23% to $135.5 million in the fourth quarter of the previous calendar year from $175.5 million in the same period last year.
In the housing sector, investments in October-December 2023 decreased by 79% to $81 million from $379.1 million in the same period last year.
Alternative assets decreased 11% to $418.7 million from $467.9 million.
Alternative assets include data centers, life sciences, senior housing, vacation homes, student housing, schools, and more.
Capital inflows into industrial and warehousing assets from October to December last year fell 16% to $187.1 million from $222 million in the same period last year.
In the fourth quarter of 2023, mixed-use projects attracted no investment, compared to $54.9 million in the same period last year.
Institutional capital flows include investments by family offices, foreign corporate groups, foreign banks, equity capital, pension funds, private equity, real estate funds and developers, foreign-invested NBFCs, and sovereign wealth funds.
For the entire 2023 calendar year, institutional investment in real estate increased 10% to $5,380.4 million from $4,877.9 million the previous year.
The office sector has been a major source of capital inflows, with investment totaling $3,022.5 million last year, up 53% from $1,978.3 million in calendar year 2022.
In the housing sector, investments in 2023 increased by 20% to $788.9 million from $655.6 million the previous year.
Capital flows into industrial and warehousing projects more than doubled from $421.8 million in 2022 to $877.6 million last year.
Investments in alternative assets decreased 25% from $866.7 million to $649.1 million.
Capital inflows to mixed-use projects plunged 91% from $463.7 million in 2022 to $42.3 million in 2023.
Retail assets received no investment from institutional investors last year, compared to $491.8 million in calendar year 2022, according to Colliers data.