India's Realty Sector Witnesses Unprecedented Growth with $2.5 Billion Institutional Investments
Institutional investments in India's real estate sector reach a three-year high, driven by robust growth in industrial, warehousing, and residential segments.
RealtyReal EstateInstitutional InvestmentsIndustrialWarehousingResidentialOffice SectorReal EstateJul 03, 2024
The industrial and warehousing segment accounted for a significant 61% of total investments, with a staggering $1.5 billion in inflows. This represents an 11-fold increase from the previous quarter, largely driven by select large deals. The residential segment also saw impressive growth, with investments surging 7.5 times from last year to $543.5 million, accounting for a 21% share.
On the contrary, institutional inflows into the office sector plummeted by 83% in Q2 2024, with investments falling 41% sequentially. According to Vikas Chimakurthy, CEO of Kotak Realty Fund,
Frequently Asked Questions
What is the current state of institutional investments in India's real estate sector?
Institutional investments in India's real estate sector have reached a three-year high of $2.5 billion in the June quarter.
Which segment accounted for the largest share of institutional investments in Q2 2024?
The industrial and warehousing segment accounted for 61% of total investments, with a staggering $1.5 billion in inflows.
What is the reason behind the decline in institutional inflows into the office sector?
The decline in institutional inflows into the office sector is due to the saturation of high-quality income-generating assets being traded and held by strong investors.
Which foreign investors participated in the Indian real estate sector in Q2 2024?
US and UAE-based investors such as Maple Tree, ADIA, GIC, and Xander participated in the Indian real estate sector in Q2 2024, collectively holding an 81% share.
What is the outlook for the Indian real estate sector in the coming quarters?
The sustained momentum is expected to drive positive sentiment for the entire year, driven by the attractiveness and the positive long-term outlook for infrastructure, construction, and real estate in India.
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