New Delhi [India], Institutional investment in the second quarter (Q2) of 2024 rose to $2.5 billion in revenue compared to the stable start to the first quarter, Colliers India, a real estate company, said in its recent report.
Among the different segments, industrial and storage recorded an inflow of $1.5 billion, with the largest proportion of 61 percent of total investments. Both segments recorded the largest deals, according to the report.
It underlines that the increase in industrial warehouses and residential investments resulted in a healthy investment volume of $3.5 billion for the first half of 2024 overall, offsetting the slow start to the first quarter. Foreign investments remained strong and accounted for 81 percent of total inflows in the second quarter of 2024, predominantly led by investors from the United States and the United Arab Emirates.
During the second quarter of 2024, institutional investments in the industrial and storage segment increased significantly, as the report observed 11 times compared to the second quarter of 2023, led by select large deals in the segment.
According to the report, the residential segment witnessed a significant increase in quarterly inflows, 7.5 times compared to Q2 2023, capturing a 21 per cent share of the total institutional inflows in the Indian real estate sector.
"Amid growing demand for premium grade A supply and evolving supply chain models, investor confidence in the segment has improved significantly," the report added.
In contrast, with $300 million of investments in office assets, the segment saw moderate activity in the second quarter of 2024, it added. The year-over-year decline in the segment was 83 percent and the quarter-on-quarter decline was a relatively modest 41 percent.
"Private equity investments in Indian real estate have shown notable resilience and strength in the first half of the year at $3.5 billion, reflecting strong market confidence. With foreign investments leading the charge with a significant share of the 73 percent in the first half of 2024, the sustained momentum is expected to drive positive sentiment throughout the year. Sustained growth in FDI and domestic capital in India corresponds to the attractiveness and positive outlook to. long term for infrastructure, construction and real estate in India. Indian real estate activity is also expected to remain strong in the second half of the year, driven by healthy economic activity and consumer confidence," Piyush said. Gupta, Managing Director, Capital Markets and Investment Services, Colliers India.
Underlining the growth of e-commerce and retail consumption, the report adds that several asset-level investors are likely to enter the market, driving demand for AI-enabled warehouses and micro-fulfillment centers in the coming quarters.
Among the different segments, industrial and storage recorded an inflow of $1.5 billion, with the largest proportion of 61 percent of total investments. Both segments recorded the largest deals, according to the report.
It underlines that the increase in industrial warehouses and residential investments resulted in a healthy investment volume of $3.5 billion for the first half of 2024 overall, offsetting the slow start to the first quarter. Foreign investments remained strong and accounted for 81 percent of total inflows in the second quarter of 2024, predominantly led by investors from the United States and the United Arab Emirates.
During the second quarter of 2024, institutional investments in the industrial and storage segment increased significantly, as the report observed 11 times compared to the second quarter of 2023, led by select large deals in the segment.
According to the report, the residential segment witnessed a significant increase in quarterly inflows, 7.5 times compared to Q2 2023, capturing a 21 per cent share of the total institutional inflows in the Indian real estate sector.
"Amid growing demand for premium grade A supply and evolving supply chain models, investor confidence in the segment has improved significantly," the report added.
In contrast, with $300 million of investments in office assets, the segment saw moderate activity in the second quarter of 2024, it added. The year-over-year decline in the segment was 83 percent and the quarter-on-quarter decline was a relatively modest 41 percent.
"Private equity investments in Indian real estate have shown notable resilience and strength in the first half of the year at $3.5 billion, reflecting strong market confidence. With foreign investments leading the charge with a significant share of the 73 percent in the first half of 2024, the sustained momentum is expected to drive positive sentiment throughout the year. Sustained growth in FDI and domestic capital in India corresponds to the attractiveness and positive outlook to. long term for infrastructure, construction and real estate in India. Indian real estate activity is also expected to remain strong in the second half of the year, driven by healthy economic activity and consumer confidence," Piyush said. Gupta, Managing Director, Capital Markets and Investment Services, Colliers India.
Underlining the growth of e-commerce and retail consumption, the report adds that several asset-level investors are likely to enter the market, driving demand for AI-enabled warehouses and micro-fulfillment centers in the coming quarters.
