Record Inflows in Indian Real Estate for Q2 2024

Q2 2024 saw a significant surge in investment momentum, with inflows reaching USD 2.5 billion—the highest in any quarter since 2021. The industrial and warehousing segment led the way, capturing 61% of total investments, amounting to USD 1.5 billion, driven by major deals in the sector.

The residential segment also experienced a notable increase, with quarterly inflows rising 7.5 times compared to Q2 2023, accounting for 21% of total institutional inflows. Conversely, the office segment saw subdued activity, attracting only USD 0.3 billion in investments, reflecting an 83% annual decline and a 41% quarter-over-quarter drop.

Despite a slow start in Q1, the surge in industrial, warehousing, and residential investments resulted in a healthy investment volume of USD 3.5 billion for H1 2024. Foreign investments were particularly strong, making up 81% of the total inflows in Q2, predominantly led by investors from the US and UAE.

“Private equity investments in the Indian real estate have shown remarkable resilience and strength in first half of the year at USD 3.5 billion, reflecting robust market confidence. With foreign investments leading the charge at a significant 73% share in H1 2024, the sustained momentum is expected to drive positive sentiment for the entire year. Sustained growth in FDI and Domestic Capital in India Real Estate reciprocates the attractiveness and the positive long-term outlook for infrastructure, construction, and real estate in India. The domestic institutional and retail investor activity in Indian real estate is also expected to remain strong in second half of the year, driven by healthy economic activity and consumer confidence," said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.