Big Investments in Indian Real Estate: Warehousing and Residential Segments Lead the Way
In the second quarter of 2024, institutional investments in Indian real estate surged to USD 2.5 billion, according to a report by Colliers India, a real estate company. The industrial and warehousing segments received the highest share of investments, amounting to USD 1.5 billion, which is 61% of the total investments.
The report highlighted that the overall investment volume for the first half of 2024 reached USD 3.5 billion, making up for the slow start in the first quarter. Foreign investments remained strong, accounting for 81% of the total inflows in the second quarter, predominantly led by investors from the US and UAE.
The industrial and warehousing segment saw a significant increase in investments, rising 11 times compared to the second quarter of 2023. The residential segment also witnessed a substantial rise, with quarterly inflows increasing 7.5 times compared to the same period in 2023, capturing a 21% share of total institutional inflows into Indian real estate.
However, the office assets segment experienced subdued activity, with investments amounting to USD 0.3 billion in the second quarter of 2024. The annual decline in this segment was 83%, and the quarter-on-quarter drop was 41%.
Piyush Gupta, Managing Director of Capital Markets and Investment Services at Colliers India, stated, “Private equity investments in Indian real estate have shown remarkable resilience and strength in the first half of the year at USD 3.5 billion, reflecting robust market confidence. With foreign investments leading the charge at a significant 73% share in H1 2024, the sustained momentum is expected to drive positive sentiment for the entire year.”
The report also noted the growth in e-commerce and retail consumption, predicting that various asset-level investors are likely to enter the market, boosting the demand for AI-enabled warehouses and micro-fulfilment centres in the upcoming quarters.
