Domestic investors infuse $638 mn in realty sector in Apr-Jun: Report

Domestic investors pumped $637.9 million in the Indian real estate during April-June -- a fivefold jump on annual basis -- expecting better returns amid strong demand, according to Vestian.

Real estate consultant Vestian on Saturday released data for institutional investments in real estate during the second quarter of 2024 calendar year.

As per the data, institutional investments in the Indian real estate rose 96 per cent in April-June to $3.1 billion from $1.6 billion in the corresponding period of the previous year.

Shrinivas Rao, CEO, Vestian said, "The Indian real estate sector garnered significant investments in the second quarter of 2024, dominated by foreign investors as the looming uncertainty over the major economies of the world has faded away."

Moreover, he said, domestic investors actively participated to capitalize on the robust economic growth.

As per the data, foreign investors infused $2,218.1 million in April-June as against $1,459.2 million in the year-ago period.

Funds infused in real estate from domestic investors rose to $637.9 million from $127 million.

Co-investments from both foreign and domestic investors increased to $260.2 million from $5.5 million.

Vestian said foreign investors accounted for the highest share of 71 per cent of the total investments received during the second quarter of 2024 as they flocked to India to capitalize on its robust economic growth.

On the other hand, domestic investors accounted for around 20 per cent share of the total investments in Q2 2024.

"Industrial & Warehousing sector reported a single large deal worth $1.5 billion, accounting for 48 per cent of the total investments received in Q2 2024," Vestian said.

Residential and commercial (office, retail, co-working, and hospitality projects) assets followed with 24 per cent and 20 per cent share, respectively.

In commercial assets, inflow of institutional investments declined to $622.3 million from $1,400 million on higher base effect.

Institutional investments in residential assets rose to $732.8 million from $57.8 million.

Industrial and warehousing assets got $1,500 million in April-June 2024 as against $133.9 million in the year-ago period.

On the outlook, Rao said investments are anticipated to increase in the upcoming quarters on the back of robust economic growth and infrastructure development.