Indian Real Estate Market Sees Resurgence in Institutional Investments
Institutional investments in Indian real estate surged 20% to USD 2.52 billion in Q2 2024, driven by a significant influx of funds into warehousing and residential sectors.
Indian Real EstateInstitutional InvestmentsWarehousingResidentialIndustrialReal Estate NewsJul 11, 2024
The report highlights that the total institutional investments in real estate reached USD 2,528.5 million during the second quarter of this year, compared to USD 2,106.4 million in the same period last year. However, the investment landscape showed varied trends across different sectors.
While office assets saw a significant decline, with investments plummeting by 83% to USD 329.6 million from USD 1,900.2 million in the corresponding quarter of 2023, the residential sector witnessed a remarkable uptick in investments, soaring to USD 543.5 million from a mere USD 72.3 million a year earlier.
The industrial and warehousing segment experienced the most remarkable growth, with investments skyrocketing to USD 1,533.1 million from USD 133.9 million in the same quarter of the previous year. This 11-fold increase was fuelled by a few large deals and the rising demand for high-quality Grade A supply and advanced supply-chain models.
Foreign investors, predominantly from the US and UAE, accounted for 81% of the total real estate investments during the April-June period of 2024. This substantial foreign interest highlighted the attractiveness of the Indian real estate market on a global scale. Meanwhile, domestic investors also showed increased activity, tripling their investments to USD 0.5 billion compared to the same quarter last year.
Bengaluru and Delhi-NCR emerged as key hotspots for real estate investments, collectively attracting around 23% of the total inflows during the last quarter. The report suggests that the trend of increased investments in industrial and warehousing projects is likely to continue, driven by the exponential growth of e-commerce and retail consumption in India.
The demand for AI-enabled warehouses and micro-fulfilment centres is expected to rise, attracting more asset-level investors in the upcoming quarters. The second quarter of 2024 has been a landmark period for institutional investments in Indian real estate, with a clear shift towards residential and industrial assets. As investor confidence grows, especially in warehousing and residential sectors, the Indian real estate market is set for sustained growth and development in the near future.
Information
Colliers India is a leading real estate consultancy firm that provides expert advice and services to property investors, developers, and occupiers.
Colliers India is a leading real estate consultancy firm that provides expert advice and services to property investors, developers, and occupiers.
Frequently Asked Questions
What was the total institutional investment in Indian real estate in Q2 2024?
USD 2,528.5 million
Which sectors saw the most significant growth in investments?
Industrial and warehousing, and residential
What percentage of total real estate investments came from foreign investors?
81%
Which cities emerged as key hotspots for real estate investments?
Bengaluru and Delhi-NCR
What is driving the growth of industrial and warehousing investments?
Exponential growth of e-commerce and retail consumption in India
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