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
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