India's Real Estate Investment Hits Record High of USD 3.9 Billion in H1 2024
India's real estate sector saw a significant boost in investment during the second quarter of 2024, with foreign investors contributing 76.3% of the total.
India Real EstateReal Estate InvestmentCushman WakefieldPrivate EquityLogistics And Industrial SectorReal Estate NewsAug 08, 2024
The second quarter's figures represent a 50% increase compared to the previous quarter and a notable 39% rise year-on-year, reflecting growing investor confidence in the Indian real estate market.
Delhi-NCR led the way in private equity investments for Q2 2024, attracting USD 532 million, which is 19% of the total investment. This marks a 74% increase compared to the same period last year. Delhi-NCR also topped the list for the first half of the year, with investments totaling approximately USD 633 million, representing 16% of the total.
Bengaluru followed with 13% of the total investment share, amounting to USD 509 million, while Hyderabad secured 8% with USD 320 million. Multi-city deals, covering various regions, made up the remaining 48% of the total investments, highlighting a diversified investment approach.
The Logistics & Industrial (L&I) sector was the largest beneficiary of investments in Q2, capturing 56% of the total, equivalent to USD 1,542 million. This sector also led for the first half of the year with 41% of the total inflows. The office sector followed, with USD 924 million in Q2 and USD 1,196 million for H1.
Foreign investors played a significant role, contributing 76.3% of the total investments in Q2 2024, particularly in the L&I sector. Investments involving a mix of equity and structured debt made up 62% of the total inflows, while pure equity deals represented 25%.
On the macro-economic front, India's manufacturing sector grew by 9.9% year-on-year, and the tertiary sector saw a 7.6% annual increase. GST collections for June 2024 also rose by 8% year-on-year, indicating strong domestic transaction volumes.
Somy Thomas, Managing Director of Valuation & Advisory and Capital Markets at Cushman & Wakefield, highlighted that the USD 3.9 billion of private equity inflows during the first half of 2024 already surpasses 70% of last year's total. He attributed this growth to infrastructure investments, particularly in logistics and industrial sectors, supported by public investments in multi-modal economic corridors.
Thomas anticipates continued positive momentum and a strong year for private equity investments in commercial real estate, potentially exceeding initial expectations.
Frequently Asked Questions
What was the total investment in India's real estate sector in H1 2024?
USD 3.9 billion
Which city led the way in private equity investments for Q2 2024?
Delhi-NCR
What was the share of foreign investors in total investments in Q2 2024?
76.3%
Which sector was the largest beneficiary of investments in Q2 2024?
Logistics & Industrial (L&I) sector
What was the growth rate of India's manufacturing sector in Q2 2024?
9.9% year-on-year
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