The Indian Real estate market recorded an investment inflow of $2.5 billion in the January-March quarter of 2024, the highest since 2021, as shared by investment management company Colliers on Wednesday, July 4, 2024.
The private equity investments went up by 154%, as compared to $995.1 million in the January-March quarter this year. The industrial & warehousing segment witnessed about half of the total inflows in Q1 of 2024, with a hike of 61% at $1.5 billion. Due to the PMI Index around 60.0, investor confidence is likely to remain strong throughout 2024, said Vimal Nadar, Senior Director and Head of Research, at Colliers India.
Projects like Dedicated Freight Corridors (DFCs) and Bharatmala underscore substantial long-term growth opportunities for the industrial & warehousing segment in India. This will also affect robust government policies, he said. The segment was followed by the residential sector at $543.5 million.
On the other hand, the office segment witnessed subdued activity, with $329 million in investments in this quarter, as compared to the same quarter last year. The quarter-on-quarter drop was relatively modest being at 41 percent and segment investments were down 83 percent.
In the first half of 2024, the total institutional investments touched $3.5 billion by the April-June quarter. Approximately, 73 % of investment out of the total was from foreign investors in the April-June quarter. The majority of the investments were made by the US and UAE.
“The domestic institutional and retail investor activity in Indian real estate is expected to remain strong in the second half of the year, driven by healthy economic activity and consumer confidence,” said Piyush Gupta, Managing Director, of Capital Markets & Investment Services at Colliers India.
