A recent report by Colliers India indicates a revival in institutional investments for Indian real estate, reaching $2.52 billion during the April-June quarter of 2024. This reflects a 20% increase compared to last year’s period and suggests a shift in investor priorities.
The report highlights a significant rise in industrial and warehousing investments, which captured the lion’s share (61%) at $1.5 billion. This surge can likely be attributed to several large deals within the segment and potentially reflects growing confidence in the e-commerce and logistics sectors that fuel demand for such spaces.
Residential investments also saw a noteworthy uptick, surging 7.5 times year-on-year to claim 21% of the total inflow. This could be due to a combination of factors, including increased affordability and a growing preference for homeownership post-pandemic.
On the other hand, office assets experienced a considerable decline (83%) year-on-year, settling at $0.3 billion in investments. This could result from a wait-and-see approach adopted by investors due to uncertainties surrounding companies’ post-pandemic office space requirements with the rise of remote work models.
Overall, the report paints a picture of a cautiously optimistic Indian real estate market, with a clear shift in investor preferences towards sectors perceived as more resilient in the current economic climate.
