According to a new report released on Wednesday, Indian real estate saw enhanced speed in the second quarter (Q2) of 2024 after a stable start in the first quarter (Q1), with $2.5 billion in inflows — the largest in any quarter since 2021.
The industrial and warehouse area lead by a few significant purchases accounted for the largest part of all investments, at 61 percent, according to Colliers, a professional services and investment management organization. Total investments were $1.5 billion.
Due to a few significant agreements in the industry, institutional investments in the industrial and warehousing area increased significantly in Q2 2024—11 times more than in Q2 2023.
Piyush Gupta, MD, Capital Markets & Investment Services at Colliers India, stated, “Private equity investments in Indian real estate have shown remarkable resilience and strength in the first half (H1) of the year at $3.5 billion, reflecting robust market confidence.”
“With foreign investments leading the charge at a significant 73 per cent share in H1 2024, the sustained momentum is expected to drive positive sentiment for the entire year,” he stated.
Quarterly inflows into the residential market increased significantly as well, 7.5 times higher than in Q2 2023, accounting for 21% of all institutional inflows into Indian real estate.
According to the report, international investments stayed strong, making up 81% of all inflows in the second quarter of 2024, with investors primarily coming from the United States and the United Arab Emirates.
Deals involving multiple cities continued to account for 72% of all investment inflows during the second quarter. Together, Bengaluru and Delhi-NCR accounted for almost 23% of all inflows during the quarter, which were mostly driven by foreign investments.
In Q2, investment inflows into Delhi-NCR increased by over 86% (year over year), driven mostly by inflows into the office segment.
