IN AN ERA OF HIGH INFLATION and rising rates, institutional money tends to chase hard assets. It's no surprise then that institutional flows into Indian real estate continued in the second quarter of 2023. Institutional investments reached $1.6 bn in Q2, 2023, a 33.3% increase over the previous quarter, but fell 40.7% YoY, reflecting a certain level of volatility in the market, according to U.S.-based real estate consultant Vestian Research. As expected, commercial assets (office space, co-working, retail, and hotels) accounted for 88% of the investments with foreign investors making up 92% of the total flows. High interest is likely to continue in the coming quarters given that commercial rental yields are trending in the 7-10% band.