Institutional Investment in Indian Real Estate Sector Sees Significant Growth in Q3 2024
Institutional investment inflows into the real estate sector touch $1.1 bn in Q3 2024, up 45%: Colliers. Office and residential segments drive growth, with foreign investors showing keen interest.
Indian Real EstateInstitutional InvestmentColliersOffice SegmentResidential SegmentReal Estate NewsOct 02, 2024
The office segment accounted for 54% of the total investments during the quarter, followed by residential, with a 33% share. Residential inflows during Q3 2024 were particularly driven by domestic capital, with overall domestic investments remaining robust at $0.5 billion, driving 44% of the total inflows during the quarter.
Private equity investments in the residential segment are on the rise, fueled by home-ownership trends and growing interest from domestic as well as foreign institutional investors. In the first nine months of 2024, investments in the residential segment crossed $1 billion, marking a significant 46% year-on-year increase. Q3 2024 alone saw $0.4 billion in residential investments, accounting for one-third of the total investments in the quarter.
Overall, institutional investments into the real estate sector have touched the $4.7 billion mark during the first nine months of 2024, almost at par with the corresponding period in 2023. Of the total, more than 60% were directed towards industrial and warehousing and residential assets.
Chennai and Mumbai drove about 57% of the quarterly inflows, backed by key acquisitions in the office segment. Almost 70% of the inflows in Chennai during the quarter were driven by foreign investments. Mumbai and Delhi NCR cumulatively witnessed about 44% of the total quarterly investments in the residential segment.
Frequently Asked Questions
What was the total investment inflow into the Indian real estate sector in Q3 2024?
$1.1 billion
Which segment accounted for the largest share of investments in Q3 2024?
Office segment, with 54% of the total investments
What was the growth rate of residential investments in Q3 2024 compared to the same period last year?
40% year-on-year growth
Which cities drove the majority of the quarterly inflows in Q3 2024?
Chennai and Mumbai, accounting for about 57% of the total inflows
What is the expected outlook for the Indian real estate sector in 2024?
The sector is expected to end on a higher note, surpassing 2023 volumes
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