Institutional Investments in Indian Real Estate Scale New Heights in Q2 2024

Mumbai, Bengaluru, real estate, institutional investments, Q2 2024

Real EstateInstitutional InvestmentsQ2 2024Indian Real EstateColliers IndiaReal Estate MumbaiJul 03, 2024

Institutional Investments in Indian Real Estate Scale New Heights in Q2 2024
Real Estate Mumbai:Institutional investments in Indian real estate have witnessed a significant surge in the second quarter of 2024, touching $2.52 billion, a 20% increase from the same period last year, according to a report by Colliers India. The industrial and warehousing segment accounted for the highest share of 61% of total investments, at $1.5 billion, led by select large deals in the segment.

The residential segment also witnessed a significant rise in quarterly inflows, 7.5 times 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, predominantly led by investors from the US and UAE.

Bengaluru and Delhi-NCR together drove about 23% of the quarterly inflows, with Bengaluru witnessing a significant rise in investments in the residential segment, followed by the office segment. Delhi NCR, on the other hand, witnessed a strong increase in investments in the office segment, led by foreign investments.

According to Piyush Gupta, managing director, Capital Markets and Investment Services at Colliers India, 'Private equity investments in Indian real estate have shown remarkable resilience and strength in the first half of the year at $3.5 billion, reflecting robust market confidence.' Gupta also expects sustained growth in FDI and domestic capital in real estate, driven by healthy economic activity and consumer confidence.

Vimal Nadar, senior director and head of research, Colliers India, noted that 'Driven by foreign investments, the industrial and warehousing segment witnessed about half of the total inflows in the first half of 2024.' Nadar expects investor confidence in the industrial and warehousing segment to remain strong throughout 2024, driven by India's Manufacturing Purchasing Managers' Index staying close to 60.0 in the last few months.

Information
Colliers India is a leading real estate consultancy firm that provides comprehensive services to investors, developers, and occupiers of commercial real estate.

Colliers India is a leading real estate consultancy firm that provides comprehensive services to investors, developers, and occupiers of commercial real estate. With a strong presence in major cities across India, Colliers India offers a range of services, including investment sales, leasing, valuation, and research and advisory services.

Frequently Asked Questions

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

$2.52 billion

What was the highest share of total investments in Q2 2024?

Industrial and warehousing segment at 61%

What was the growth rate of institutional investments in Q2 2024 compared to the same period last year?

20%

Which cities drove about 23% of the quarterly inflows in Q2 2024?

Bengaluru and Delhi-NCR

What is the expected sentiment for the entire year in terms of institutional investments in Indian real estate?

Positive, driven by robust market confidence and healthy economic activity

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