NEW DELHI: Investment in India's real estate sector is likely to rise by 5 per cent to $6.5 billion (around Rs 46,000 crore) this year, driven mainly by huge demand for commercial office assets from IT firms, according to global property consultant Colliers.Last year, the real estate sector attracted an investment of $6.2 billion, up 8.7 per cent from 2018 as foreign investors bought many office properties. Foreign funds accounted for about 78 per cent of the total investments in 2019.According to Colliers, India's real estate sector has recorded inflows of $56.6 billion (Rs 410,000 crore) since 2008. "During 2019, investments into the real estate sector touched $6.2 billion (Rs 43,780 crore). During 2020, Colliers projects investments inflows of $6.5 billion in the real estate sector," it said in a report.The consultant expects investors to remain committed to commercial office assets over the next three years, with strong demand and outlook for further rental appreciation. "Due to the prolonged slowdown in the sector, investors should continue to adopt a more conservative approach towards residential assets in general, as compared to commercial assets," the report said.Coliving would draw considerable attention from investors as demand for rental homes rises among professionals relocating to cities having employment opportunities, the consultant said.Warehousing, retail and coworking segments are also on investors' radar.

Source: Economic Times January 01, 2020 09:11 UTC