According to statistics released by real estate consultant Colliers on Wednesday, private equity investments in Indian real estate reached a three-year high in the April-June quarter at $2.5 billion. The amount invested in this quarter was 20% more than the $2.1 billion made in the same period previous year. The PE investments increased by 154% to $995.1 million over the January-March quarter of this year. With $1.5 billion, or 61% of the overall investments, the industrial and warehousing sector held the largest proportion.
According to Vimal Nadar, Senior Director and Head of Research at Colliers India, "The industrial & warehousing segment witnessed about half of the total inflows in the first half of 2024, driven by foreign investments."
In light of the fact that the Manufacturing Purchasing Managers' (PMI) Index for India has been hovering around 60.0 in recent months, he continued, investor confidence in the industrial and warehousing sector is probably going to be robust until 2024.
"Furthermore, strategic infrastructure projects such as Dedicated Freight Corridors (DFCs) and Bharatmala and robust government policies such as National Logistics Policy, underscore substantial long-term growth opportunities for the industrial & warehousing segment in India," he stated. At $543.5 million, the residential sector came next in the section.
Nonetheless, the office market saw muted activity throughout the quarter with investments totaling $329 million. as compared to the previous year's similar quarter. The segment's investments decreased by 83 percent. At 41%, the quarter-over-quarter decline was not too significant.
A robust April-June quarter propelled institutional investments to a total of $3.5 billion in the first half of 2024. The January–March quarter was one of relative calm for the nation. Seventy-three percent of the funding came from outside sources. During the April-June quarter, this accounted for 81% of all inflows. Investors from the US and the UAE made up the majority of the investments.
In the second half of the year, "the domestic institutional and retail investor activity in Indian real estate is expected to remain strong, driven by healthy economic activity and consumer confidence," stated Piyush Gupta, Managing Director of Colliers India's Capital Markets & Investment Services.
