Institutional Investment In Realty Touches $1.1 Bn In Q3: Report

With a conducive domestic environment, ongoing festive season and a much-anticipated reduction in interest rates, investor confidence in India’s residential realty is poised to remain intact,” - Vimal Nadar, Head - Research, Colliers India

Hyderabad: Sustained confidence of investors in the Indian economy has continued to drive institutional investments into the real estate sector. During July to September period (Q3 2024), realty projects registered investment inflow of about $1.1 billion, reflecting a 45 per cent YoY growth, a Colliers India report said.

During the quarter, office segment accounted for 54 per cent of the total investments, followed by residential, with a share of 33 per cent. According to the reports, residential inflows during Q3 were driven by domestic capital, whereas the overall domestic investment garnered 44 per cent of the total inflow, at $0.5 billion. At $0.6 billion inflows in the third quarter, foreign investments have more than doubled compared to Q3, 2023, it added.

“The investors are well diversified between global and domestic capital. While office assets remain a key focus, industrial and warehousing and residential segments are gaining significant momentum. The newer emerging themes like fractional ownership in office and warehousing, residential platforms with developers, and flexible credit, are driving opportunities for investors. With continued momentum, 2024 is expected to end on a higher note, likely surpassing 2023 volumes,” said Piyush Gupta, Managing Director, Investment Services, Colliers India.

During the first nine months of 2024 (Jan-Sept), $4.7 billion institutional inflows poured in, of which, 60 per cent were directed towards industrial and warehousing, and residential assets. Going forward, robust demand and supply momentum in Grade A office spaces across the top markets will keep investor confidence upbeat, the investment management company mentioned in the report.

Apart from office assets, residential assets witnessed inflow at $0.4 billion, a yearly surge of 40 per cent. In this asset class, investments were directed towards developmental assets, as institutional investors are continuing to partner with reputed developers in residential projects.

“With a conducive domestic environment, ongoing festive season and a much-anticipated reduction in interest rates, investor confidence in India’s residential real estate market is poised to remain intact,” said Vimal Nadar, Head - Research, Colliers India.