India's Real Estate Market Sees 45% Surge in Institutional Investments to $1.15 Billion in Q2 FY25

According to Colliers, the office segment attracted $616.3 million in investments during the third quarter of this calendar year, a seven-fold jump from $79.1 million in the year-ago period.

Real EstateInstitutional InvestmentsIndiaColliersOffice SegmentReal Estate NewsOct 03, 2024

India's Real Estate Market Sees 45% Surge in Institutional Investments to $1.15 Billion in Q2 FY25
Real Estate News:India's real estate market has witnessed a significant surge in institutional investments, with a 45% growth to $1.15 billion in the second quarter of FY25, according to a report by Colliers. The office segment emerged as the most attractive asset class, with investments of $616.3 million during the third quarter of this calendar year, a seven-fold jump from $79.1 million in the year-ago period.

The residential segment, which has seen a significant surge in demand post-COVID pandemic, saw a 40% growth in investments to $384.8 million from $274.6 million. However, the industrial and warehousing segment witnessed a fall of 72% in fund inflow to $95.2 million from $340.3 million. Investments in mixed-use projects almost doubled to $52.4 million from $27.2 million.

Alternate assets, which include data centers, life sciences, senior housing, holiday homes, student housing, and schools, among others, did not receive any funding in July-September as against $72.2 million in the year-ago period. Domestic investments remained robust at $0.5 billion, contributing 44% of the total inflows during the July-September quarter.

Chennai and Mumbai together accounted for about 57% of the total inflows during Q3 2024, backed by key acquisitions in the office segment. Multi-city deals accounted for 30% share in the total institutional investment in real estate during July-September 2024.

Frequently Asked Questions

What is the growth rate of institutional investments in India's real estate market in Q2 FY25?

45%

Which segment attracted the most investments in India's real estate market in Q2 FY25?

Office segment

What is the growth rate of investments in the residential segment in India's real estate market in Q2 FY25?

40%

Which cities accounted for the majority of institutional investments in India's real estate market in Q2 FY25?

Chennai and Mumbai

What is the share of domestic investments in the total inflows in India's real estate market in Q2 FY25?

44%

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