Real Estate Sector Sees Surge in Institutional Investment Inflows in Q3 2024
Office segment drives over half of investments, followed by residential with 33% share; Chennai and Mumbai attract 57% of total inflows
Real EstateInstitutional InvestmentOffice SegmentResidential SegmentChennaiMumbaiReal Estate MumbaiOct 02, 2024
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.
Quarterly investments in the office segment surged 6.8X times over Q3 2023, with foreign investments accounting for 88% of the total inflows into the segment during Q3 2024.
Apart from office assets, residential assets too witnessed notable inflows during the quarter at $0.4 billion, witnessing a substantial surge of 40% on a year-on-year basis.
Chennai and Mumbai together accounted for about 57% of the total inflows during Q3 2024, backed by key acquisitions in the office segment.
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. With continued momentum, 2024 is expected to end on a higher note, likely surpassing 2023 volumes.
Frequently Asked Questions
What was the total investment inflow into the 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% share
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 accounted for the largest share of total inflows during Q3 2024?
Chennai and Mumbai, with 57% share
What is the expected outcome for 2024 in terms of institutional investment inflows into the real estate sector?
2024 is expected to end on a higher note, likely surpassing 2023 volumes
Related News Articles
Maharashtra Set to Revolutionize Electronics with First OSAT Facility in Navi Mumbai
Maharashtra takes a giant leap in electronics manufacturing with the inauguration of its first OSAT facility in Navi Mumbai, set to become operational by September.
Maharashtra Declares Day of Mourning for Ratan Tata; Remains to be Kept at NCPA
Ratan Tata, the legendary chairman emeritus of the Tata Group, has passed away at the age of 86. The Maharashtra government has declared a day of mourning to honor his legacy, with the national tricolor to be flown at half-mast on all government buildings
Mumbai to Get Rs 580 Bn Boost to Cut Travel Time to Under 1 Hour
MMRDA's elaborate plan to encircle Mumbai with ring roads to reduce travel time to under 1 hour
Navigating MMR's Real Estate Market: Red Flags to Watch Out For
MMR's peripheral areas offer attractive investment opportunities, but buyers must be aware of project delays, construction halts, and poor construction quality to avoid financial losses.
Panasonic Life Acquires Valuable Land Parcel in Mumbai for Rs 1.60 Billion
Panasonic Life has made a significant investment in the real estate sector by acquiring a land parcel worth Rs 1.60 billion in Mumbai, further solidifying its presence in the bustling city of Maharashtra.
Mumbai's Commercial Real Estate Thrives with Sustainable Redefinition
Mumbai's commercial real estate market is experiencing a significant surge in redevelopment activity, driving a rental housing market boom and pushing developers to adopt sustainable practices.