Alternatives had a 51% share of total inflows during Q4 2023, indicating strong demand in segments including data centres, student housing, life sciences, and schools. Overall, student housing accounted for about 60% of investment inflows within alternatives during the year, said Colliers.
“As India’s real estate sector closes yet another promising year, institutional investments saw an increase of 10% and stand at $5.4 billion – the highest since 2020. The investments in Indian real estate are more broad-based, with significant investments coming into education, shared spaces, and data centres, adding to a strong domestic upcycle in office, residential, and industrial areas,” said Piyush Gupta, MD of capital markets & investment services at Colliers India.
Prominent funds such as Keppel, CPPIB, Brookfield, Kotak Realty Fund, HDFC Capital, Hillhouse Capital, and Symphony Investment Holdings are looking to allocate funds to capitalise on the increasing demand for these asset classes.
The segment has also created new platforms between RIL, Brookfield Infra-Digital Realty, and Blackstone, as well as a tactical opportunity fund (Lumina CloudInfra). “2023 was a watershed year when the market made a decisive move from mainstream assets to alternate asset classes. This paradigm will further accelerate with purpose-built living and healthcare taking centre stage in 2024,” said Jasmeet Singh Chhabra, co-founder, JV Ventures.
