Institutional investment in real estate reached at $1 billion in Q1 of FY24: Report

Real estate investment: In first quarter of 2024, real estate sector witnessed institutional investments reaching $1.0 billion. Although this marked a 40 per cent decrease compared to same period last year, re was a notable 21 per cent increase from previous quarter, indicating a positive trajectory. Foreign investors remained dominant, contributing to 55 per cent of total inflows, while domestic investments also saw a significant rise, increasing by 15 per cent year-on-year.

Piyush Gupta, Managing Director of Capital Markets & Investment Services at Colliers India, pointed out growing prominence of domestic investors in Indian real estate landscape. He highlighted surge in domestic investments, particularly in office and residential assets, showcasing investor confidence in India's growth prospects.

office sector continued to attract majority of investments, accounting for $ 0.6 billion or 57 per cent of total inflows in Q1 2024. Foreign investors played a key role in this segment, reflecting ir trust in India's commercial office market fundamentals. Cities like Bengaluru and Hyderab emerged as hotspots for office investments, reflecting strong demand for Gre A office spaces.

On or hand, industrial and warehousing segment maintained its momentum from previous year, capturing an 18 per cent share of total inflows in Q1 2024. 

With $0.2 billion invested during quarter, segment showed consistent growth, driven by evolving trends such as micro-fulfillment centers and AI-driven supply chains. As segment continues to evolve, experts anticipate furr consolidation and institutionalisation, attracting ditional global capital in years to come.