Institutional investments in India's real estate sector surged 45% year-on-year to $1.15 billion in Q3 2024, driven by strong demand for premium residential and office spaces, according to Colliers. Total institutional investments rose to $1,148.7 million from $793.4 million in the same period last year. The office segment saw the most significant growth, attracting $616.3 million, a substantial increase from $79.1 million in 2023. Chennai and Mumbai were key markets, accounting for 57% of the total inflows due to large office acquisitions.
The residential segment also saw a 40% jump in investments, reaching $384.8 million, while industrial and warehousing investments fell sharply by 72% to $95.2 million. Mixed-use developments nearly doubled their investments to $52.4 million. However, alternative assets like data centers and life sciences saw no investment this quarter, compared to $72.2 million last year.
Domestic investments remained strong, contributing $0.5 billion, or 44% of the total inflows. Multi-city deals made up 30% of total institutional investments. Colliers' Managing Director Piyush Gupta noted the steady flow of institutional capital, with a focus on office assets and growing interest in industrial, warehousing, and residential sectors. Sanju Bhadana, Managing Director of 4S Developers, emphasized that India's demographic advantage, economic growth, and favorable policies continue to attract both domestic and global investors.
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