The Indian real estate sector is becoming an increasingly lucrative avenue for investment, with warehouses and factories driving the trend, an analysis by real estate consulting firm, Colliers India, revealed recently.
In the April-June quarter in the 2024 calendar year, the industry attracted an investment of a record $2.5 billion, wherein big cities like Bengaluru and Delhi became the preference for a lot of investors, particularly in offices and homes. This investment value also marked the highest seen in three years, reported Business Standard citing the data.
Amongst the various types of real estate, warehouses and factories emerged as the favourite and brought in more than half of the money this year, the data revealed.
The segment attracted 61 per cent of the overall investment or $1.5 billion. This was driven by a developing e-commerce sector in the country and a shift in focus towards domestic manufacturing.
The residential segment of the real estate sector also witnessed a surge in investment as the inflow gained 7.5 times in the second quarter of 2024, against the same period a year earlier. This reflected the rise in investor confidence in the residential market and the increasing belief that people view homes as a secure investment avenue.
Meanwhile, investments in office spaces plunged in the period under review. In the second quarter in 2024, the segment brought in 83 per cent less investment compared to the corresponding quarter a year earlier.
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Sharing a note, Colliers said, “The residential segment also witnessed significant rise in quarterly inflows, 7.5X times compared to Q2 2023, capturing a 21% share of total institutional inflows into Indian real estate. In contrast, with USD 0.3 billion of investments in office assets, the segment witnessed subdued activity in Q2 2024. Although the annual decline was significant at 83%, the QoQ drop was relatively modest at 41%. The surge in industrial & warehousing, and residential investments resulted in a healthy investment volume of USD 3.5 billion for H1 2024 at an overall level, making up for the slow start in first quarter.”