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Institutional investment inflows in Indian realty touch USD 1.1 bn during Q3 2024 (July -Sept), up 45%
Institutional investment inflows in Indian realty touch USD 1.1 bn during Q3 2024 (July -Sept), up 45%

October 15, 2024

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Office segment drove over half of the investments in Q3 2024, followed by residential with 33% share. Domestic investments accounted for 44% of the total investments during the quarter.


Mumbai, 02 October 2024: Sustained confidence in Indian economy continued to drive institutional investments into the real estate sector, reaching USD 4.7 billion during the first three quarters of 2024 (January - September 2024), almost at par with the corresponding period in 2023. Following significant inflows in the first two quarters, Q3 2024 too registered healthy investment inflow of about USD 1.1 billion, reflecting a 45% YoY growth. Office segment accounted for 54% of the total investments during the quarter, followed by residential, with a 33% share. Residential inflows during Q3 2024 were particularly driven by domestic capital. Overall domestic investments remained robust at USD 0.5 billion, driving 44% of the total inflows during the quarter.

In addition to continued traction in domestic capital, foreign investors also maintained a sizeable and a healthy appetite for Indian real estate. At USD 0.6 billion inflows in Q3 2024, foreign investments have more than doubled compared to the investments witnessed in Q3 2023. 

Investment inflows (USD million) Q3 2024–

 

Investment inflows (USD million) YTD 2024 –

Quarterly investments in Office segment surged by 6.8X times over Q3 2023

After witnessing subdued activity in the previous quarter, investments in the office segment doubled on a QoQ basis, at USD 0.6 billion inflows. At the same time, investments also rose by 6.8X times as compared to the same period last year. Foreign investments accounted for 88% of the total inflows into the segment during Q3 2024. Going forward, robust demand and supply momentum in Grade A office spaces across the top markets will keep the investor confidence buoyant.

Apart from office assets, residential assets too witnessed notable inflows during the quarter at USD 0.4 billion, witnessing a substantial surge of 40% on a YoY basis.

Chennai & Mumbai together drove about 57% of the quarterly inflows 

Chennai and Mumbai together accounted for about 57% of the total inflows during Q3 2024 backed by key acquisitions in office segment. Almost 70% of the inflows in Chennai during the quarter were driven by foreign investments. Mumbai and Delhi NCR cumulatively witnessed about 44% of the total quarterly investments in the residential segment. Furthermore, multi-city investments corresponded to 30% of the overall inflows during Q3 2024 and were predominantly directed towards office and residential asset classes.

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Colliers India
Sukanya Dasgupta, Head Marketing and Communications - sukanya.dasgupta@colliers.com

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