Domestic investors pumped USD 637.9 million in the Indian real estate during April-June — a fivefold jump on annual basis — expecting better returns amid strong demand, according to Vestian. Real estate consultant Vestian on Saturday released data for institutional investments in real estate during the second quarter of 2024 calendar year.
As per the data, institutional investments in the Indian real estate rose 96 per cent in April-June to USD 3.1 billion from USD 1.6 billion in the corresponding period of the previous year.
Shrinivas Rao, CEO, Vestian said, “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.”
Moreover, he said, domestic investors actively participated to capitalize on the robust economic growth.
As per the data, foreign investors infused USD 2,218.1 million in April-June as against USD 1,459.2 million in the year-ago period.
Funds infused in real estate from domestic investors rose to USD 637.9 million from USD 127 million.
Co-investments from both foreign and domestic investors increased to USD 260.2 million from USD 5.5 million.
Vestian said foreign investors accounted for the highest share of 71 per cent of the total investments received during the second quarter of 2024 as they flocked to India to capitalize on its robust economic growth.
On the other hand, domestic investors accounted for around 20 per cent share of the total investments in Q2 2024.
“Industrial & Warehousing sector reported a single large deal worth USD 1.5 billion, accounting for 48 per cent of the total investments received in Q2 2024,” Vestian said.
Residential and commercial (office, retail, co-working, and hospitality projects) assets followed with 24 per cent and 20 per cent share, respectively.
In commercial assets, inflow of institutional investments declined to USD 622.3 million from USD 1,400 million on higher base effect.
Institutional investments in residential assets rose to USD 732.8 million from USD 57.8 million.
Industrial and warehousing assets got USD 1,500 million in April-June 2024 as against USD 133.9 million in the year-ago period.
On the outlook, Rao said investments are anticipated to increase in the upcoming quarters on the back of robust economic growth and infrastructure development.
Another Noida based developer Purvanchal projects has bought an 40,000 sq metre land for Rs 149.47 crore, both the land parcels are for group housing projects and developers are expected to build high rises on the acquired land.
