Institutional Investment in Indian Real Estate Sees 20% Yearly Growth in Q2 2024
Colliers India reports a 20% year-on-year increase in institutional investments in Indian real estate, driven by significant growth in warehousing and residential sectors.
Indian Real EstateInstitutional InvestmentWarehousingResidential SectorColliers IndiaReal EstateJul 11, 2024
This growth in investments is a testament to the growing confidence of investors in the Indian real estate market, particularly in non-office assets. The report highlights that the total institutional investments in real estate reached USD 2,528.5 million during the second quarter of this year, compared to USD 2,106.4 million in the same period last year.
However, the investment landscape showed varied trends across different sectors. Investment in office assets plummeted dramatically, falling by 83% to USD 329.6 million from USD 1,900.2 million in the corresponding quarter of 2023.
On the other hand, the residential sector saw a significant uptick in investments, which soared to USD 543.5 million from a mere USD 72.3 million a year earlier. The industrial and warehousing segment experienced the most remarkable growth, with investments skyrocketing to USD 1,533.1 million from USD 133.9 million in the same quarter of the previous year.
The report suggests that the trend of increased investments in industrial and warehousing projects is likely to continue, driven by the exponential growth of e-commerce and retail consumption in India. The demand for AI-enabled warehouses and micro-fulfilment centres is expected to rise, attracting more asset-level investors in the upcoming quarters.
minantly from the US and UAE, accounted for 81% of the total real estate investments during the April-June period of 2024. This substantial foreign interest highlighted the attractiveness of the Indian real estate market on a global scale. \n
Bengaluru and Delhi-NCR emerged as key hotspots for real estate investments, collectively attracting around 23% of the total inflows during the last quarter. As investor confidence grows, especially in warehousing and residential sectors, the Indian real estate market is set for sustained growth and development in the near future.
Frequently Asked Questions
What was the total institutional investment in Indian real estate in Q2 2024?
USD 2,528.5 million
Which sector saw the most remarkable growth in investments?
Industrial and warehousing segment
What percentage of total real estate investments came from foreign investors in Q2 2024?
81%
Which cities emerged as key hotspots for real estate investments?
Bengaluru and Delhi-NCR
What is driving the growth of industrial and warehousing projects in India?
Exponential growth of e-commerce and retail consumption
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