Indian Real Estate Sector Sees Significant Investments in Q1 2024
Investment Inflows
According to a recent report by Cushman & Wakefield, the Indian real estate sector witnessed substantial investments of USD 1.1 billion in Q1 2024. Notably, the Residential Real Estate Sector outperformed other asset classes, attracting nearly $693 million in investments.
Key Drivers
- Strong Housing Demand: A significant factor contributing to the upward trend in the residential sector.
- Resurgent Supply: Fresh supply of residential units has been instrumental in driving investments.
Investment Breakdown
- Residential Sector: Accounted for more than 63% of total realty investments in Q1 2024.
- Investment Concentration: Approximately 48% of residential sector investments were focused on the early stages of development across the top eight cities.
Investor Landscape
Who's Investing?
- Domestic Investors: Maintained strong investment momentum, accounting for 57% of total quarterly investments.
- Foreign Investors & Collaborative Deals: Contributed 43% to the inflows in Q1 2024.
City-Wise Investment Split
- Bangalore: Led the pack, accounting for 25.6% of total investments, with a significant portion going to the office sector.
- Pune: Ranked second, contributing 14% to the total investment volume.
Investment in Equity & Debt
- Equity Investments: Stood at 58% in Q1 2024, with the office sector being the preferred choice among equity investors (43%).
- Debt Investments: Saw a significant increase, doubling the quarterly average level of the previous eight quarters, primarily benefiting the residential sector.
Corporate Transaction Volumes
- Year-on-Year Increase: 65%, reaching INR 12.78 billion (USD 0.15 million).
- City Leaders: Mumbai drove transaction value (57%), followed closely by Pune (33%).
Expert Insights
“Q1 2024 saw another strong quarter of capital inflow into the Indian real estate sector, with residential dominating due to renewed customer and investor confidence.” - Somy Thomas, MD of Valuation & Advisory and Capital Markets at Cushman & Wakefield.
“Domestic investors increased their investment in the quarter, providing additional protection against potential global headwinds while strengthening India’s domestic market and investor interests.” - Somy Thomas