NEW DELHI: Institutional investment in Indian real estate rose 20 per cent annually to USD 2.52 billion in the April-June quarter on higher inflow in warehousing and residential projects, according to Colliers India. Real estate consultant Colliers India on Wednesday released the data, stating that the institutional investments in real estate stood at USD 2,528.5 million in the April-June quarter this year, up 20 per cent from USD 2,106.4 million in the year-ago period.
As per the data, investments in office assets declined 83 per cent to USD 329.6 million from USD 1,900.2 million.
However, the inflow of funds in residential rose to USD 543.5 million from USD 72.3 million.
Institutional investments in industrial & warehousing projects jumped sharply to USD 1,533.1 million during April-June 2024 from USD 133.9 million a year ago.
With 81 per cent share, foreign investors, predominantly from the US and UAE, drove real estate investments during the April-June period of this calendar year.
Domestic investors infused USD 0.5 billion in the second quarter of this calendar year, nearly three times from the year-ago period.
Bengaluru and Delhi-NCR cumulatively attracted about 23 per cent of the inflows in the last quarter.
During April-June 2024, institutional investments in the industrial & warehousing segment rose manifold, 11 times, compared to the year-ago period, led by select large deals in the segment.
“Amidst rising demand for superior quality Grade A supply and evolving supply-chain models, investor confidence in the segment has significantly improved. With healthy demand momentum, global as well as domestic investors are going to play a prominent role in consolidation of industrial & warehousing assets in the country,” the consultant said.
Amidst significant spurt in e-commerce and retail consumption in India, various asset-level investors are likely to enter the market, boosting the demand for AI-enabled warehouses and micro-fulfilment centres in the upcoming quarters, it added.
