Institutional investments in India’s real estate market increased by 31% year-on-year to reach $4.61 billion between January and September 2024, driven by strong consumer demand, according to a report by real estate consultancy Vestian.
Vestian’s latest report, titled Investment in Indian Real Estate, highlights that institutional investment inflows during the first nine months of 2024 have already surpassed the total investment levels recorded in 2023.
“The sustained growth in India’s GDP has contributed to growing investor confidence, particularly among foreign investors. This led to institutional investment crossing the $1 billion mark during the third quarter of 2024,” said Shrinivas Rao, CEO of Vestian.
Domestic investors are also playing an active role, supported by the country’s ongoing infrastructure development.
In the July-September 2024 quarter, institutional investments in the real estate sector grew by 41% year-on-year to $960.8 million, compared to $679.9 million in the same period in 2023. However, investment levels declined significantly from the $3.1 billion recorded in the June 2024 quarter.
“Despite ongoing geopolitical uncertainties, India’s economic strength continues to attract both foreign and domestic investors. The increasing return to office spaces and expanding office markets are expected to maintain investor confidence in the coming quarters,” Vestian stated in the report.
Despite the sharp quarterly drop of 69%, Vestian maintains a positive outlook for the sector.
Chennai emerged as the top destination for investments during the third quarter of 2024, receiving 48% of total institutional inflows. Most of these investments were directed towards the industrial, warehousing, commercial, and residential sectors.
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By Proptechbuzz
By Ravi Kumar
