Institutional investments rose 96% in Indian real estate in April-June
ECONOMY & POLICY

Institutional investments rose 96% in Indian real estate in April-June

Institutional investments in Indian real estate saw a significant surge, with domestic investors infusing $637.9 million during April-June FY25, a fivefold increase compared to the previous year, driven by expectations of better returns amid strong demand, according to Vestian.

Real estate consultant Vestian reported that total institutional investments in Indian real estate rose by 96% in April-June, reaching $3.1 billion, up from $1.6 billion in the same period last year.

Shrinivas Rao, CEO, Vestian, commented, "The Indian real estate sector garnered significant investments in the second quarter of 2024, dominated by foreign investors as the looming uncertainty over the major economies of the world has faded away." He also noted that domestic investors were actively participating to capitalize on the robust economic growth.

The data revealed that foreign investors injected $2,218.1 million in April-June, compared to $1,459.2 million in the same period the previous year. Investments from domestic investors rose to $637.9 million from $127 million. Additionally, co-investments from both foreign and domestic investors increased to $260.2 million from $5.5 million.

Foreign investors accounted for the highest share of total investments at 71% during the second quarter of 2024, capitalising on India's robust economic growth. Domestic investors made up around 20% of the total investments in Q2 2024.

Vestian highlighted that the industrial and warehousing sector reported a single large deal worth $1.5 billion, making up 48% of the total investments received in Q2 2024. Residential and commercial assets, including office, retail, co-working, and hospitality projects, followed with shares of 24% and 20%, respectively.

In commercial assets, the inflow of institutional investments declined to $622.3 million from $1,400 million due to a higher base effect. Institutional investments in residential assets rose to $732.8 million from $57.8 million. Industrial and warehousing assets received $1,500 million in April-June 2024, compared to $133.9 million in the previous year.

Looking ahead, Rao said investments are anticipated to increase in the upcoming quarters, driven by robust economic growth and infrastructure development. (Source: ET)

Institutional investments in Indian real estate saw a significant surge, with domestic investors infusing $637.9 million during April-June FY25, a fivefold increase compared to the previous year, driven by expectations of better returns amid strong demand, according to Vestian. Real estate consultant Vestian reported that total institutional investments in Indian real estate rose by 96% in April-June, reaching $3.1 billion, up from $1.6 billion in the same period last year. Shrinivas Rao, CEO, Vestian, commented, The Indian real estate sector garnered significant investments in the second quarter of 2024, dominated by foreign investors as the looming uncertainty over the major economies of the world has faded away. He also noted that domestic investors were actively participating to capitalize on the robust economic growth. The data revealed that foreign investors injected $2,218.1 million in April-June, compared to $1,459.2 million in the same period the previous year. Investments from domestic investors rose to $637.9 million from $127 million. Additionally, co-investments from both foreign and domestic investors increased to $260.2 million from $5.5 million. Foreign investors accounted for the highest share of total investments at 71% during the second quarter of 2024, capitalising on India's robust economic growth. Domestic investors made up around 20% of the total investments in Q2 2024. Vestian highlighted that the industrial and warehousing sector reported a single large deal worth $1.5 billion, making up 48% of the total investments received in Q2 2024. Residential and commercial assets, including office, retail, co-working, and hospitality projects, followed with shares of 24% and 20%, respectively. In commercial assets, the inflow of institutional investments declined to $622.3 million from $1,400 million due to a higher base effect. Institutional investments in residential assets rose to $732.8 million from $57.8 million. Industrial and warehousing assets received $1,500 million in April-June 2024, compared to $133.9 million in the previous year. Looking ahead, Rao said investments are anticipated to increase in the upcoming quarters, driven by robust economic growth and infrastructure development. (Source: ET)

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