USD 1.1 Billion in institutional inflows fuel Indian Real Estate in Q3 2024

With less than one week remaining until India GRI 2024, the forum arrives at a pivotal moment for the Indian real estate sector. According to a recent report by Colliers, institutional investment inflows into the sector have reached USD 1.1 billion in Q3 2024 , marking a 45% year-on-year growth.

?? The office market led the way, representing 54% of total investments , while the residential sector followed with 33%, emphasising strong demand across both segments.?

Domestic investors contributed USD 500 million, or 44% of the total inflows, while foreign investors also demonstrated strong interest, injecting USD 600 million in Q3 2024 - more than double their investments from the same period in 2023.

?? In parallel, private equity investments in Indian real estate saw a significant surge during the Q3 2024, reaching USD 2.2 billion, a remarkable 93% sequential growth. Year-to-date, PE inflows from January-September 2024 totaled USD 3.9 billion, already surpassing the total investment volume for the entire year of 2023.?

The industrial and logistics sector captured 77% of these investments, totaling USD 1.7 billion, while the office segment followed with 21%. Interestingly, foreign investors dominated the commercial sector , concentrating on core assets in major cities such as Chennai and Mumbai, underscoring their strategic focus on high-value opportunities.

?? Further underscoring this trend, Foreign Institutional Investors (FIIs) have significantly increased their allocations to Indian real estate, directing INR 53.75 billion to the sector in September. Real estate has now become the third-largest sector for FII investments, following financial services and healthcare.

Additionally, FII assets under custody (AUC) surpassed USD 1 trillion for the first time , with USD 930 billion in equity and USD 76.83 billion in debt and other assets, representing a 26.7% increase since the start of the year.

?? Looking ahead, attracting an additional USD 100 billion in foreign investments will be crucial for India to move from an 'underweight' to a 'neutral weight' position in institutional portfolios. Factors such as robust earnings growth and favourable government policies provide strong potential for these inflows.?

LESS THAN ONE WEEK TO GO UNTIL INDIA GRI 2024! Now is your chance to discover the latest insights into India's investment landscape at the premier real estate forum , happening on October 16th in Mumbai.

?? CLICK HERE to learn more.

NEW Report: Bangalore’s Office Market

Bangalore remains at the forefront of India’s commercial real estate market, recording a gross office leasing volume of nearly 12 million square feet in the first half of 2024, while rental rates surged due to low vacancy in prime locations.

?? GRI Club India’s latest report - “Bangalore’s Office Market” - provides insights from a recent forum at which senior industry leaders discussed how Global Capability Centres (GCCs) and flexible workspaces are transforming the city’s leasing landscape.

The material also explores whether Bangalore can meet the rising demand for premium office spaces, as the industry assesses if the supply of green, tech-enabled developments can keep pace with evolving tenant expectations.

?? Click here to read the full report on the GRI Hub News.

Residential sales jump 9% while office leasing hits new record in Q3 2024

Housing sales in the first nine months of 2024 rose by 9% year-on-year to over 260,000 units, driven predominantly by higher-priced homes, according to Knight Frank India .?

??? This growth, despite occasional monthly fluctuations, reflects a sustained upward trend in residential demand. Notably, sales of homes priced above INR 1 crore have surged, while those below this price point have seen a decline.?

In Q3 2024, the high-end segment represented 46% of total sales , a significant increase from 35% a year earlier. Meanwhile, homes priced between INR 50 lakh and INR 1 crore contributed 30% of sales, and properties under INR 50 lakh accounted for 24%.

?????? On the commercial side, the office sector continues to demonstrate robust activity. Leasing activity reached 19 million square feet in Q3 2024 , marking the highest quarterly absorption since Q1 2018 and representing an 18% year-on-year increase from Q3 2023.?

A key driver of this demand has been Global Capability Centers (GCCs), which accounted for 7.1 million square feet, or 37% of the total transacted volume. Additionally, India-facing businesses contributed significantly , taking up 6.6 million square feet of the total leasing activity.?

?? This momentum in these major segments suggests that 2024 may surpass the performance of previous years. According to Knight Frank India, the office market in particular is expected to continue its robust growth, potentially crossing 70 million square feet in transactions by year-end, demonstrating a solid recovery and expansion despite global economic headwinds.

Both commercial and residential markets will be at the forefront of discussions at India GRI 2024 , with dedicated sessions exploring the latest trends and opportunities in these sectors.

?? CLICK HERE to learn more.

Other News ??

?? RBI’s monetary policy could shape the future of the housing market

??? Supreme Court allows claiming input tax credit on construction expenses

?? India grade A warehousing leasing set to cross 45 million sqft in 2024

?? Tier 2 and 3 cities set for over 25 million sqft of retail expansion by 2029

?? Mumbai Metro to put prime 4.2-acre land in Nariman Point on block

Corporate Radar ??

?? IndoSpace to invest RS 4,500 crore in logistics and warehouse parks

?? Certus Capital to roll out its first Rs 500 crore real estate AIF this fiscal

?? iSprout expands footprint in Hyderabad with 1 million sqft office space

?? Colt in talks with RMZ for Indian data centre joint venture

?? NetApp partners with CBRE for integrated facility management services

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