Investments in real estate rise 45% in Q2 FY25
Institutional investments in real estate grew 45 %to nearly $ 1.15 billion in July-September with investors looking to encash the strong demand for premium homes and offices, according to Colliers. Consultant Colliers India data showed that the institutional investments in real estate during July-September stood at $ 1,148.7 million as against $ 793.4 million in the year-ago period.
Among different assets class in the overall real estate market, the consultant noted that office segment attracted $ 616.3 million during the third quarter of this calendar year, a more than seven-fold jump from $ 79.1 million in the year-ago period. The residential segment, which has seen a significant surge in demand post COVID pandemic, saw a 40 %growth in investments to $ 384.8 million from $ 274.6 million.
Industrial & warehousing segment witnessed a fall of 72 %in fund inflow to $ 95.2 million from $ 340.3 million. Investments in mixed use projects almost doubled to $ 52.4 million from $ 27.2 million.
Alternate assets, which include data centres, life sciences, senior housing, holiday homes, student housing, and schools, among others, did not receive any funding in July-September as against $ 72.2 million in the year-ago period. Overall, Colliers said that domestic investments remained robust at $ 0.5 billion, contributing 44 %of the total inflows during the July-September quarter.
"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 consultant data showed that Chennai and Mumbai together accounted for about 57 %of the total inflows during Q3 2024 backed by key acquisitions in office segment. Multi-city deals accounted for 30 %share in the total institutional investment in real estate during July-September 2024.
Gurugram-based realty firm 4S Developers Managing Director Sanju Bhadana said, "India's demographic advantage coupled with healthy domestic consumption, favourable policy environment, massive infrastructure development and a robust economy is attracting investment in the real estate sector from both domestic and global investors."
The regional diversity of this investment points not just to the overall growth and development of Indian cities but also the potential and evolution of each segment of the real estate sector, Bhadana added.
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