New Delhi [India], Foreign investors have taken the lead in India's real estate sector during the first half of 2024, accounting for 65 percent of total investments, according to a JLL report.
The report highlighted that Foreign Institutional Investors (IFIs) injected around $3.1 billion, contributing significantly to the sector's total investment of $4.8 billion in the first six months of 2024.
The report noted that investment in the real estate sector during the first 6 months of the year has already covered around 81 per cent of the total investment in 2023. It highlights investor confidence in India amid global uncertainties and election season , exemplifying the country's robust economy.
While real estate investments declined slightly in the first quarter of 2024 compared to a year ago, the report noted that the overall first half of 2024 saw nearly double the number of deals, with an average deal size of $113 million. .
The proportion of domestic investors fell to 35 percent in the first half of 2024 from 37 percent in 2023. The average proportion of domestic investors in the past five years is 19 percent.
"India has once again demonstrated its impressive resilience in the face of global economic challenges, attracting significant institutional investments totaling $4.8 billion in the first half of 2024. This is a notable increase of 62 percent compared to the same period in 2023, showing investors 'unshakeable confidence in the growth potential of the Indian real estate market,' said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL
The residential sector achieved a record semi-annual investment of $1.6 billion and the report attributed this to regulatory reforms and improved transparency in the segment over the past 5-7 years. Investment in this sector leaned primarily toward debt, as 68 percent of deals were structured debt.
The report also noted that the office sector, which was historically the favorite investment asset class among institutional investors, saw a decline in investments in the first half of 2024 compared to the previous year. The storage sector leads with a 34 percent share of investments, closely followed by residential with a 33 percent share.
However, the report notes that the increase in investment in the storage sector was mainly driven by a single deal that accounted for more than 92 percent of the total transaction volume in the storage sector.
Although the growth was not broad-based, it highlights the growing interest in the warehousing sector and the potential it holds for investments in India.
Outlining the outlook for the next half of 2024, the report stated that India's economy continues to show resilience and a positive outlook for the real estate sector, attracting investors interested in the country's growth story. Private equity investment prospects remain strong, with diversification of interest into residential, office, warehouse and other sectors.
The report highlighted that Foreign Institutional Investors (IFIs) injected around $3.1 billion, contributing significantly to the sector's total investment of $4.8 billion in the first six months of 2024.
The report noted that investment in the real estate sector during the first 6 months of the year has already covered around 81 per cent of the total investment in 2023. It highlights investor confidence in India amid global uncertainties and election season , exemplifying the country's robust economy.
While real estate investments declined slightly in the first quarter of 2024 compared to a year ago, the report noted that the overall first half of 2024 saw nearly double the number of deals, with an average deal size of $113 million. .
The proportion of domestic investors fell to 35 percent in the first half of 2024 from 37 percent in 2023. The average proportion of domestic investors in the past five years is 19 percent.
"India has once again demonstrated its impressive resilience in the face of global economic challenges, attracting significant institutional investments totaling $4.8 billion in the first half of 2024. This is a notable increase of 62 percent compared to the same period in 2023, showing investors 'unshakeable confidence in the growth potential of the Indian real estate market,' said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL
The residential sector achieved a record semi-annual investment of $1.6 billion and the report attributed this to regulatory reforms and improved transparency in the segment over the past 5-7 years. Investment in this sector leaned primarily toward debt, as 68 percent of deals were structured debt.
The report also noted that the office sector, which was historically the favorite investment asset class among institutional investors, saw a decline in investments in the first half of 2024 compared to the previous year. The storage sector leads with a 34 percent share of investments, closely followed by residential with a 33 percent share.
However, the report notes that the increase in investment in the storage sector was mainly driven by a single deal that accounted for more than 92 percent of the total transaction volume in the storage sector.
Although the growth was not broad-based, it highlights the growing interest in the warehousing sector and the potential it holds for investments in India.
Outlining the outlook for the next half of 2024, the report stated that India's economy continues to show resilience and a positive outlook for the real estate sector, attracting investors interested in the country's growth story. Private equity investment prospects remain strong, with diversification of interest into residential, office, warehouse and other sectors.
