PE investments in residential realty cross $1bn in first 9 months of 2024

Private equity investments in India's residential market  are on the rise, fuelled by home-ownership trends and growing interest from domestic as well as foreign institutional investors. In the first nine months of 2024, investments in the segment crossed $1 billion, marking a significant 46% year-on-year increase, according to a report by real estate consultancy firm Colliers. 

The third quarter of 2024 alone saw $0.4 billion in residential investments, accounting for one-third of the total investments in the quarter. Most of these investments were directed towards developmental assets, as institutional investors continue to partner with reputed developers in marquee residential projects. 

"With a conducive domestic environment, ongoing festive season and a much-anticipated reduction in interest rates, investor confidence in India's residential real estate market is poised to remain intact," said Vimal Nadar, Senior Director and Head of Research, Colliers India.

Investment inflows (USD million) YTD 2024 –

*Note: Alternate assets include data centers, life sciences, senior housing, holiday homes, student housing, schools etc.

**Investment inflows in Retail were in YTD 2023 and YTD 2024

Source: Colliers

The office segment segment accounted for 54% of the total investments during the third quarter, followed by residential, with a 33% share. Residential inflows during Q3 2024 were particularly driven by domestic capital. Overall domestic investments remained robust at $0.5 billion, driving 44% of the total inflows during the quarter.  

"While office assets remain a key focus, industrial & warehousing and residential segments are gaining significant momentum. The newer emerging themes like fractional ownership in office & warehousing, residential platforms with developers, flexible credit, and hospitality are driving opportunities for investors. Of the total $4.7 billion institutional inflows during the first nine months of 2024 (Jan-Sept), over 60% were directed towards industrial & warehousing and residential assets” said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India.

Investment inflows (USD million) Q3 2024

Quarterly investments in Office segment surged by 6.8X times over Q3 2023

After witnessing subdued activity in the previous quarter, investments in the office segment doubled on a QoQ basis, at $0.6 billion inflows. At the same time, investments also rose by 6.8X times as compared to the same period last year. Foreign investments accounted for 88% of the total inflows into the segment during Q3 2024. 

Chennai & Mumbai together drove about 57% of the quarterly inflows

Chennai and Mumbai together accounted for about 57% of the total inflows during Q3 2024 backed by key acquisitions in office segment. Almost 70% of the inflows in Chennai during the quarter were driven by foreign investments. Mumbai and Delhi NCR cumulatively witnessed about 44% of the total quarterly investments in the residential segment. 

City-wise investment inflows in Q3 2024:

Asset class wise share of investment inflows in Q3 2024 and YTD 2024

*Note: Alternate assets include data centres, life sciences, senior housing, holiday homes, student housing, schools etc

Source: Colliers