Institutional investments in Indian real estate touched USD 1.0 billion in Q1 2024; cues for a positive start
Indian real estate sector by institutional investors reached $1.0 billion in the first quarter of 2024. Though this indicates a decline of 40% compared to the same period in the previous year, India's real estate investments displayed an upward trend, with a 21% quarter-on-quarter increase, as reported by Colliers.
Foreign investments continued to dominate, constituting 55% of the total inflows, while domestic investments also registered a significant increase of 15% year-on-year in Q1 2024. The share of domestic inflows in overall institutional investments continued to rise to 45%, compared to 24% in Q1 2023.
During the last quarter, there were some notable business investments like Edelweiss Capital invested $178.8 million in MFAR Developers, a significant infusion of funds for the company.
Additionally, GIC deployed $258 million towards Waverock, a significant investment in the real estate sector. Finally, Clint invested $93.3 million in office assets in India, adding to the growing market of office space in the country. These deals demonstrate a strong interest in the Indian market and the potential for future growth and development.
“Interestingly, domestic investors are increasingly gaining more ground in Indian real estate. Within domestic institutional investments, office and residential assets formed about 66%, reflecting a strategic approach to align with India's growth trends. This also underscores growing confidence of a diversified spectrum of investors across multiple investment strategies
