India's Real Estate Sector Sees 20% Surge in Institutional Investments in Q2
India's real estate sector is witnessing a significant growth in institutional investments, driven by the rising demand for warehousing and residential projects
Real EstateIndiaInstitutional InvestmentsWarehousingResidential ProjectsReal Estate NewsJul 03, 2024
In the April-June quarter, institutional investments in real estate stood at USD 2,528.5 million, up 20% from USD 2,106.4 million in the same period last year. While investments in office assets declined by 83% to USD 329.6 million, residential projects saw a significant increase in investments, rising to USD 543.5 million from USD 72.3 million.
The industrial and warehousing sector witnessed a sharp jump in investments, rising to USD 1,533.1 million from USD 133.9 million last year. Foreign investors, predominantly from the US and UAE, drove real estate investments during the quarter, with a share of 81%. Domestic investors infused USD 0.5 billion in the second quarter, nearly three times the amount invested in the same period last year.
Bengaluru and Delhi-NCR cumulatively attracted about 23% of the inflows in the last quarter. The industrial and warehousing segment saw an 11-fold increase in investments compared to the same period last year, led by select large deals in the segment.
The rising demand for superior quality Grade A supply and evolving supply-chain models has significantly improved investor confidence in the segment. With healthy demand momentum, global as well as domestic investors are expected to play a prominent role in the consolidation of industrial and warehousing assets in the country.
The growth in e-commerce and retail consumption in India is also expected to attract various asset-level investors, boosting the demand for AI-enabled warehouses and micro-fulfilment centres in the upcoming quarters.
Information
Colliers India is a leading real estate consultancy firm that provides expert advice and services to clients in India.
Colliers India is a leading real estate consultancy firm that provides expert advice and services to clients in India.
Frequently Asked Questions
What was the total amount of institutional investments in Indian real estate in Q2 2024?
USD 2.52 billion
What drove the growth in institutional investments in Indian real estate in Q2 2024?
Rising demand for warehousing and residential projects
Which segment saw the sharpest increase in investments in Q2 2024?
Industrial and warehousing
What percentage of institutional investments came from foreign investors in Q2 2024?
81%
What is expected to drive the demand for warehousing and micro-fulfilment centres in the upcoming quarters?
Growth in e-commerce and retail consumption in India
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