Realty Investments See 45% Growth in September Quarter
Institutional investment in real estate sector grows to $1.1 billion in Q3 2024, driven by office and residential segments.
Real EstateInstitutional InvestmentOffice SegmentResidential SegmentChennaiMumbaiReal EstateOct 02, 2024
The office segment accounted for a substantial 54% of the total investments during the quarter, followed by residential with a 33% share. Notably, investments in the office segment doubled on a sequential basis and rose by 6.8X against the same period last year.
Residential inflows during Q3 2024 were particularly driven by domestic capital, with domestic investments accounting for 44% of the total inflows during the quarter. This trend suggests that domestic investors are increasingly optimistic about the Indian real estate market.
Chennai and Mumbai, two of India's major cities, together accounted for about 57% of the total inflows during Q3 2024, backed by key acquisitions in the office segment. These cities have emerged as hubs for commercial and residential activity, attracting significant investment.
At $4.7 billion, the investments of the first three quarters of 2024 are almost at par with the corresponding period in 2023. This indicates a steady growth in institutional investment in the real estate sector, despite any market fluctuations.
Information
The Indian real estate sector has been witnessing a gradual recovery since the pandemic. With the government's initiatives to boost the sector, such as the introduction of REITs (Real Estate Investment Trusts) and the relaxation of FDI norms, the sector is expected to attract more institutional investment in the coming years.
JLL is a leading professional services firm specializing in real estate and investment management. With a presence in over 80 countries, JLL provides expert advice to clients on all aspects of the real estate market.
Frequently Asked Questions
What was the growth rate of institutional investment in the real estate sector in Q3 2024?
The growth rate was 45% to $1.1 billion.
Which segment accounted for the largest share of total investments during Q3 2024?
The office segment accounted for 54% of the total investments.
What drove residential inflows during Q3 2024?
Domestic capital drove residential inflows, accounting for 44% of the total inflows.
Which cities accounted for the largest share of total inflows during Q3 2024?
Chennai and Mumbai together accounted for about 57% of the total inflows.
What was the total investment in the real estate sector in the first three quarters of 2024?
The total investment was $4.7 billion.
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