3 min readMumbaiOct 9, 2024 12:13 AM IST
First published on: Oct 9, 2024 at 12:13 AM IST
Private equity (PE) investment inflows into the Indian real estate sector reached US $ 2.2 billion (Rs 18,600 crore) in the third quarter of calendar year (July-September) 2024, reflecting an impressive 93 per cent growth on a sequential basis, more than double the investment volume recorded in the same period last year, says a report.
Moreover, PE inflows during the January-September period 2024 inflows at US $ 3.9 billion (Rs 32,900 crore) have exceeded the investment quantum registered in the entire year 2023, according to the latest report by Savills India, a global real estate consulting firm.
It said the quarterly data indicates that industrial and logistics segment took the lead, with $ 1.7 billion (Rs 14,400 crore) capturing 77 per cent of the total investment volume. “This could be attributed to rising opportunities in the segment due to growing demand from e-commerce players and government’s push towards establishing India as a manufacturing hub,” Savills said.
“The commercial office segment ranked second, garnering 21 per cent of the overall PE investments. All investments in this sector came from foreign investors, focusing on core assets in cities like Chennai, Mumbai and NCR,” it said.
“Despite global challenges, India witnessed heightened investment activity with YTD 2024 inflows surpassing all of 2023 investments, reflecting strong investor confidence on the back of a robust macroeconomic environment. The industrial & logistics segment takes the biggest share in quarterly investments, as diversification strategies take centre stage,” said Arvind Nandan, Managing Director, Research & Consulting, Savills India.
Meanwhile, Colliers India said sustained confidence in Indian economy continued to drive institutional investments into the real estate sector, reaching $ 4.7 billion during the first three quarters (January to September) of 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 $ 1.1 billion, reflecting a 45 per cent YoY growth. Office segment accounted for 54 per cent of the total investments during the quarter, followed by residential, with a 33 per cent share. Residential inflows during Q3 of 2024 were particularly driven by domestic capital. Overall domestic investments remained robust at $ 0.5 billion, driving 44 per cent of the total inflows during the quarter, Colliers India said.
“Institutional flows in Indian realty remain consistent, indicating sustained investor confidence. The investors are well diversified between global and domestic capital. While office assets remain a key focus, industrial & warehousing and residential segments are gaining significant momentum,” said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.
“The newer emerging themes like fractional ownership in office & warehousing, residential platforms with developers, flexible credit, and hospitality are driving opportunities for investors. Of the total USD 4.7 billion institutional inflows during the first nine months of 2024 (Jan-Sept), over 60 per cent were directed towards industrial & warehousing and residential assets. With continued momentum, 2024 is expected to end on a higher note, likely surpassing 2023 volumes,” Gupta said.
India’s real estate sector is the second largest employer after the agriculture sector and the phenomenal growth of 18.7 per cent CAGR of this sector poses employment opportunities. It is soon set to become the largest employment generating sector and a hub for young talent, according to NAREDCO Maharashtra.
India’s real estate sector is the second largest employer after the agriculture sector and the phenomenal growth of 18.7 per cent CAGR of this sector poses employment opportunities. 
Share
