Indian Real Estate Sees 20% Annual Rise in Institutional Investment

Institutional investment in Indian real estate surged 20% annually to USD 2.52 billion from April to June, driven primarily by strong inflows in warehousing and residential projects. Foreign investors, mainly from the US and UAE, led the charge, contributing significantly to this growth.

In a significant boost for the Indian real estate sector, institutional investment rose by 20 percent year-on-year, amounting to USD 2.52 billion in the April-June quarter. This surge is attributed to increased investments in warehousing and residential projects, as per data released by real estate consultant Colliers India on Wednesday.

The data revealed that while overall investments grew, there was a staggering 83 percent decline in office asset investments, which fell to USD 329.6 million from USD 1.9 billion last year. Conversely, residential project investments soared to USD 543.5 million from USD 72.3 million.

A particularly remarkable rise was seen in institutional investments in industrial and warehousing projects. The sector witnessed investments jump to USD 1.53 billion from a mere USD 133.9 million the previous year. Foreign investors, primarily from the US and UAE, were the major contributors, accounting for 81 percent of the total inflow.

This trend is expected to continue, driven by the increasing demand for high-quality Grade A supply, evolving supply-chain models, and the growth of e-commerce and retail consumption in India.

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