Indian Real Estate Sees Record-Breaking $2.5 Billion Investment in Q2 2024

Warehousing takes center stage with 61% of the investment, driven by India's booming e-commerce sector and increasing focus on domestic manufacturing.

Real EstateWarehousingIndustrialE CommerceForeign InvestmentReal EstateJul 03, 2024

Indian Real Estate Sees Record-Breaking $2.5 Billion Investment in Q2 2024
Real Estate:India's real estate market has witnessed a record-breaking $2.5 billion investment in the second quarter of 2024, with warehousing and factories emerging as the hottest property. According to an analysis by Colliers India, a real estate consulting firm, the industrial and warehousing sector attracted a whopping 61% of the total investment, or $1.5 billion. This trend is likely fueled by India's booming e-commerce sector and the increasing focus on domestic manufacturing.

The residential segment also saw a remarkable increase in investment, jumping a staggering 7.5 times compared to Q2 2023. This surge in investment suggests growing investor confidence in the residential market and potentially reflects a perception of homes as a secure investment option.

Interestingly, a dominant share (81%) of the total investment comes from foreign investors, with a significant portion originating from the US and UAE. This strong foreign investment reflects growing global confidence in the Indian economy and its real estate sector.

Bengaluru and Delhi NCR together drove about 23% of the quarterly inflows, with foreign investments playing a significant role. About 56% of the quarterly inflows in Bengaluru were directed towards residential assets, followed by the office segment.

The surge in industrial & warehousing, and residential investments resulted in a healthy investment volume of $3.5 billion for H1 2024. Amidst significant spurt in E-commerce and retail consumption in India, various asset-level investors are likely to enter the market, boosting the demand for AI-enabled warehouses and micro-fulfillment centers in the upcoming quarters.

Frequently Asked Questions

What was the total investment in Indian real estate in Q2 2024?

$2.5 billion

What percentage of the total investment went into industrial and warehousing?

61%

What drove the surge in investment in industrial and warehousing?

India's booming e-commerce sector and increasing focus on domestic manufacturing

What was the growth in residential investment compared to Q2 2023?

7.5 times

What percentage of the total investment came from foreign investors?

81%

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