India's residential real estate sector has seen a substantial year-on-year increase in institutional investments in Q3 2023, according to Vestian. The firm disclosed a 71% YoY rise, with funds reaching $298.3 million. This growth is part of an overall 82% YoY boost in institutional investments across the entire Indian real estate sector, totaling $679.9 million. Domestic investors have played a significant role, contributing a hefty 71% to this sum.
However, the sector experienced a steep quarter-on-quarter decline of 57% in overall institutional inflow. This fall is attributed to global macroeconomic challenges that have reduced foreign investors' share to 27%. Despite this, Shrinivas Rao, Vestian's CEO, anticipates an investment surge due to the expected return of employees to offices, which will likely increase demand for office space.
In terms of investment targets within the sector, the residential area remained a prime focus in Q3 2023, despite its share slightly reducing from 47% to 44%. Commercial assets, including office assets that attracted investments worth $164.1 million, saw their share drop from 40% to 24%. On the other hand, the industrial and warehousing sector's share saw significant growth. This surge can be attributed to the 'Make in India' campaign and the rising popularity of e-commerce.
Vantiva maintains guidance amid revenue decline and strategic moves
In other news, Vantiva has reported a decrease of 38% to €473m in Q3 2023 revenues amid weak market conditions. Despite this setback, the company has maintained its EBITDA (> €140m) and EBITA (> €45m) guidance. However, it revised its free cash flow expectations due to changes in Q4 revenue timing and high inventory levels.
The company's Connected Home and SCS divisions reported revenue decreases of 42% (€339m) and 26% (€134m) respectively. In response to these challenges, Vantiva has implemented strict cost control measures and is preparing next-generation devices based on DOCSIS4.0 and Wi-Fi 7 technologies.
Alongside its cost control measures, Vantiva announced the strategic acquisition of CommScope Home Networks activities and secured a new €85m financing deal set to mature in March 2024. The company also won its first contracts for 5G FWA technology in North America and Europe, signaling a strategic shift towards new markets.
Despite these efforts, Vantiva expects a challenging market in 2024 but sees strong growth potential in its Fiber products.
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