India's Real Estate Sector Sees Surge in Institutional Investments

Institutional investments in Indian real estate reached a new high of $2.52 billion in Q2 2024, with foreign investors leading the charge.

Real EstateInstitutional InvestmentsIndiaColliers IndiaForeign InvestmentsIndustrial And WarehousingResidential SegmentReal EstateJul 03, 2024

India's Real Estate Sector Sees Surge in Institutional Investments
Real Estate:The Indian real estate sector has witnessed a significant surge in institutional investments, with a total of $2.52 billion invested in the April-June quarter of 2024. This marks a 20% increase from the same period last year, according to a report by Colliers India.

The industrial and warehousing segment led the way, accounting for 61% of total investments, with a significant $1.5 billion invested in the sector. This is likely due to the growing demand for e-commerce and retail consumption in India, which is driving the need for AI-enabled warehouses and micro-fulfillment centers.

The residential segment also saw a significant rise in quarterly inflows, with a 7.5 times increase compared to Q2 2023, capturing a 21% share of total institutional inflows into Indian real estate.

Foreign investments remained robust, accounting for 81% of the total inflows in Q2 2024, with investors from the US and UAE leading the charge. Bengaluru and Delhi-NCR together drove about 23% of the quarterly inflows, with multi-city deals continuing to drive the majority of investment inflows.

According to Piyush Gupta, managing director, Capital Markets and Investment Services at Colliers India,

Frequently Asked Questions

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

$2.52 billion

Which segment led the way in terms of institutional investments in Q2 2024?

Industrial and warehousing segment

What was the percentage increase in institutional investments in Q2 2024 compared to the same period last year?

20%

What drove the demand for AI-enabled warehouses and micro-fulfillment centers in India?

Growing demand for e-commerce and retail consumption

What is the expected trend for institutional investments in Indian real estate in the second half of 2024?

Strong growth driven by healthy economic activity and consumer confidence

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