Real Estate Sees Fivefold Surge in Domestic Investments in Q2 2024
ECONOMY & POLICY

Real Estate Sees Fivefold Surge in Domestic Investments in Q2 2024

Indian real estate experienced a substantial boost in investments during the second quarter of 2024, with domestic investors pumping in USD 637.9 million, a fivefold increase compared to the same period last year. This surge in investment was fueled by strong demand and expectations of better returns, as reported by real estate consultant Vestian.

According to Vestian's data, institutional investments in Indian real estate rose by 96% in April-June 2024, reaching USD 3.1 billion compared to USD 1.6 billion in the previous year. This remarkable growth was driven primarily by the fading uncertainty in major global economies, encouraging investors to capitalize on India's robust economic expansion.

Shrinivas Rao, CEO of Vestian, highlighted the significant role of domestic investors in this growth. "The Indian real estate sector garnered significant investments in the second quarter of 2024, dominated by domestic investors actively participating to capitalize on the robust economic growth," Rao said.

Foreign investors also showed strong interest, infusing USD 2,218.1 million during the quarter, up from USD 1,459.2 million in the year-ago period. Co-investments from both foreign and domestic investors saw a notable increase, reaching USD 260.2 million from just USD 5.5 million in the previous year.

Vestian's report indicated that foreign investors accounted for the majority share of 71% of the total investments received in Q2 2024, while domestic investors contributed around 20%. The industrial and warehousing sector stood out, reporting a single large deal worth USD 1.5 billion, which accounted for 48% of the total investments received during the quarter.

Residential and commercial assets followed with 24% and 20% shares, respectively. Inflow into commercial assets, however, declined to USD 622.3 million from USD 1.4 billion, influenced by a higher base effect. On the other hand, investments in residential assets saw a significant rise to USD 732.8 million from USD 57.8 million. Industrial and warehousing assets received USD 1.5 billion in Q2 2024, up from USD 133.9 million in the same period last year.

Looking ahead, Rao expressed optimism, stating that investments are anticipated to increase in the upcoming quarters, driven by ongoing economic growth and infrastructure development.

Indian real estate experienced a substantial boost in investments during the second quarter of 2024, with domestic investors pumping in USD 637.9 million, a fivefold increase compared to the same period last year. This surge in investment was fueled by strong demand and expectations of better returns, as reported by real estate consultant Vestian. According to Vestian's data, institutional investments in Indian real estate rose by 96% in April-June 2024, reaching USD 3.1 billion compared to USD 1.6 billion in the previous year. This remarkable growth was driven primarily by the fading uncertainty in major global economies, encouraging investors to capitalize on India's robust economic expansion. Shrinivas Rao, CEO of Vestian, highlighted the significant role of domestic investors in this growth. The Indian real estate sector garnered significant investments in the second quarter of 2024, dominated by domestic investors actively participating to capitalize on the robust economic growth, Rao said. Foreign investors also showed strong interest, infusing USD 2,218.1 million during the quarter, up from USD 1,459.2 million in the year-ago period. Co-investments from both foreign and domestic investors saw a notable increase, reaching USD 260.2 million from just USD 5.5 million in the previous year. Vestian's report indicated that foreign investors accounted for the majority share of 71% of the total investments received in Q2 2024, while domestic investors contributed around 20%. The industrial and warehousing sector stood out, reporting a single large deal worth USD 1.5 billion, which accounted for 48% of the total investments received during the quarter. Residential and commercial assets followed with 24% and 20% shares, respectively. Inflow into commercial assets, however, declined to USD 622.3 million from USD 1.4 billion, influenced by a higher base effect. On the other hand, investments in residential assets saw a significant rise to USD 732.8 million from USD 57.8 million. Industrial and warehousing assets received USD 1.5 billion in Q2 2024, up from USD 133.9 million in the same period last year. Looking ahead, Rao expressed optimism, stating that investments are anticipated to increase in the upcoming quarters, driven by ongoing economic growth and infrastructure development.

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