Institutional investors pumping more capital into residential realty

The combination of key factors, such as record-low interest rates, pandemic-driven realisation of the need for home ownership, developer incentives, and increased buyer confidence, bodes well for the residential sector.

Since the Real Estate (Regulation and Development) Act, 2016, there has been a rise in the level of transparency in residential real estate. This is giving institutional investors more confidence as they increase their exposure to this market.

"We have seen a lot of consolidation in this space over the past few years, and there is a growing sentiment that the sector has largely been cleaned up. This, coupled with the strong residential demand that we are witnessing, has brought a lot of investors back into the market," said Lata Pillai, managing director and head, Capital Markets, India,

"Robust hiring in the past 18 months and increasing salaries in technology, healthcare, and other sectors is likely to keep the momentum going for housing sales and institutional investors' interest in the sector."