Indian Real Estate Surges with $2.5 Billion in Q2 Investments

Indian real estate has witnessed a robust surge in investments during the second quarter (Q2) of 2024, reaching a significant milestone of $2.5 billion, the highest quarterly inflow since 2021. According to Colliers, a leading professional services and investment management company, the industrial & warehousing sector dominated these investments, accounting for 61% of the total at $1.5 billion, driven by several large-scale transactions.

Notably, institutional investments in the industrial & warehousing segment surged dramatically, growing 11 times compared to Q2 2023, propelled by substantial deals within the sector. Piyush Gupta, MD of Capital Markets & Investment Services at Colliers India, highlighted the resilience of private equity investments in Indian real estate, totaling $3.5 billion in the first half (H1) of 2024. He emphasized that foreign investments, constituting 73% of H1 inflows, are pivotal in sustaining market confidence and are expected to bolster sentiment throughout the year.

The residential segment also witnessed a remarkable upswing in Q2, recording a 7.5-fold increase compared to the same period last year, capturing 21% of total institutional inflows. Foreign investments remained robust, making up 81% of total Q2 inflows, predominantly sourced from the US and UAE investors.

Multi-city transactions continued to dominate investment flows, commanding a 72% share during Q2. Bengaluru and Delhi-NCR collectively accounted for approximately 23% of the total inflows, driven predominantly by foreign investments. Delhi-NCR, in particular, saw an impressive 86% year-on-year rise in investment inflows during the quarter, largely attributable to investments in the office segment.

Overall, the significant surge in Q2 investments underscores a strong recovery and growing investor confidence in India's real estate market. The dominance of industrial & warehousing sectors, coupled with robust foreign investments across key cities, sets a positive trajectory for the sector's performance throughout 2024.