Indian Real Estate Sees Unprecedented Growth in Q2 2024 with $2.5 Billion Institutional Investments
The Indian real estate market has witnessed a significant surge in institutional investments, with a total of $2.5 billion in Q2 2024, driven by foreign investments and domestic institutional and retail investor activity.
Indian Real EstateInstitutional InvestmentsIndustrial And WarehousingResidential SegmentForeign InvestmentsReal EstateJul 03, 2024
Foreign investments remained robust, accounting for 81% of the total inflows in Q2 2024, predominantly led by investors from the US and UAE. The surge in the industrial and warehousing segment, and residential investments resulted in a healthy investment volume of $3.5 billion for H1 2024 at an overall level, making up for the slow start in the first quarter.
Piyush Gupta, managing director, capital markets and investment services at Colliers India, said, “Private equity investments in Indian real estate have shown remarkable resilience and strength in the first half of the year at $3.5 billion, reflecting robust market confidence. With foreign investments leading the charge at a significant 73% share in H1 2024, the sustained momentum is expected to drive positive sentiment for the entire year.
During Q2 2024, the institutional investments in the industrial and warehousing segment rose manifold, 11 times compared to Q2 2023 led by select large deals in the segment. Amidst rising demand for superior quality Grade A supply and evolving supply-chain models, investor confidence in the segment has significantly improved.
Vimal Nadar, senior director and head of research, Colliers India, said, “Driven by foreign investments, the industrial and warehousing segment witnessed about half of the total inflows in the first half of 2024. Interestingly, institutional investments in the segment for H1 2024 is almost twice the inflows in the entirety of 2023. With India’s Manufacturing Purchasing Managers’ (PMI) Index staying close to 60.0 in the last few months, investor confidence in the industrial and warehousing segment is likely to remain strong throughout 2024.
While at 72% share, multi-city deals continued to drive majority of the investment inflows during Q2 2024, Bangalore and Delhi NCR together corresponded to about 23% of the total inflows during the quarter driven by foreign investments. About 56% of the quarterly inflows in Bangalore were directed towards residential assets, followed by the office segment. Investments in the office segment were particularly strong in Delhi-NCR.',
Frequently Asked Questions
What was the total institutional investment in Indian real estate in Q2 2024?
$2.5 billion
Which segment accounted for the highest share of total investments in Q2 2024?
Industrial and warehousing segment
What is the share of foreign investments in total inflows in Q2 2024?
81%
What is the expected sentiment for the entire year 2024?
Positive sentiment is expected to drive the market
What is the forecast for the industrial and warehousing segment in 2024?
Investor confidence in the segment is likely to remain strong throughout 2024
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