Institutional investments in Indian real estate touched US$ 1 billion in Q1 2024; cues for a positive start

In the first quarter of 2024, India's real estate sector witnessed a notable shift in investment patterns, with domestic investors nearly doubling their exposure to the market, accounting for 45% of total investments compared to 24% in the same period in 2023. According to a report by Colliers, this surge reflects growing investor confidence fuelled by favourable policy reforms, improving economic conditions, and robust demand for real estate assets. While foreign investments continued to dominate with a 55% share of total inflows, domestic investments also saw a significant year-on-year increase of 15% in Q1 2024. Leading domestic funds such as ASK Property Fund, Edelweiss Capital, Kotak AIF, Welspun, and Motilal Oswal Private Equity Fund seek to deploy substantial capital.

The report further highlights the growing traction of domestic investors in Indian real estate, particularly in office and residential assets, which accounted for about 66% of domestic institutional investments. Managing Director of Capital Markets & Investment Services at Colliers India, Mr. Piyush Gupta, emphasizes the strategic alignment of investments with India's growth trends, indicating a diversified spectrum of investor strategies encompassing credit and acquisitions. Despite a 40% decline in total fund flows compared to last year, the sector displayed a resilient upward trend with a 21% quarter-on-quarter increase, signalling robust long-term growth potential and sustained investor interest.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.