Institutional investments in the Indian real estate sector reached $4.61 billion between January and September 2024, registering a healthy increase of 31 percent year-on-year, according to a report by real estate consultancy Vestian.
According to the report, this has already exceeded the total investments seen during 2023. Shrinivas Rao, CEO of Vestian, said the sector is booming largely due to healthy consumer demand and confidence in the economic trajectory of India enhanced by a solid GDP growth. “As a result, the real estate sector witnessed increased participation of foreign investors, leading to institutional investments reaching the billion-dollar mark in the third quarter of 2024,” Rao said.
During the third quarter of 2024, institutional real estate investments increased to $960.8 million, 41 percent from the same period last year, which stood at $679.9 million. The figure represented a huge decrease of 72 percent compared to the investments seen in the previous quarter, which were $3,116.3 million.
Although this is the worst drop of 69 percent this quarter, the investment scenario in the real estate sector seems optimistic. India’s economy remains strong and attracts domestic and foreign investors, leaving aside the geopolitical challenges facing the nation, as Vestian mentioned. The work-from-office policy trend and expanding office market would further boost investor sentiment in the coming quarters.
Chennai topped the list for Q3 2024 in investments that accounted for 48 per cent of institutional inflow. According to the report, the vast majority of investments in the city were made in the industrial and storage, commercial and residential sectors.
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