Institutional investors are pouring money into India's real estate sector, with investments surging 45% to nearly $1.15 billion in the third quarter of 2024. This strong growth, highlighted in a report by Colliers India, underscores the continued confidence in the market's potential.

Office and Residential Sectors Attract Major Investments

The office segment emerged as a top performer, attracting $616.3 million in Q3 2024, a significant increase from the previous year. The residential sector also witnessed robust growth, with investments rising 40% to $384.8 million. These figures reflect the strong demand for premium homes and office spaces in India's major cities.

Key Highlights:

• Total Investments: Institutional investments in Indian real estate reached $1,148.7 million in Q3 2024, a 45% increase year-on-year.

• Office Segment: Investments in office spaces saw a more than seven-fold jump, driven by strong demand and rising rental yields.

• Residential Segment: The residential sector continues to attract significant investment, fueled by post-pandemic demand and favorable market conditions.

• Regional Trends: Chennai and Mumbai accounted for 57% of the total investments, highlighting their appeal to institutional investors.

• Alternative Assets: Investments in alternative assets like data centers and life sciences saw a temporary dip in Q3 2024.

Expert Insights:

• Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India: Emphasizes the sustained investor confidence in the Indian real estate market and the growing momentum in the office, industrial & warehousing, and residential segments.

• Sanju Bhadana, Managing Director of 4S Developers: Highlights India's strong economic fundamentals and favorable policy environment as key factors attracting both domestic and global investors.

Conclusion:

The surge in institutional investments in Q3 2024 underscores the positive outlook for the Indian real estate market. With strong demand for premium properties, favorable government policies, and a robust economy, the sector is poised for continued growth and expansion. While alternative assets experienced a temporary dip, the overall trend suggests a healthy and dynamic market that continues to attract significant investment from both domestic and global players.

-source: thehindubusinessline.com