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Institutional investments in Indian real estate increased to USD 1.27 billion in the third quarter, marking an 11 per cent rise from last year, primarily driven by office assets. Domestic investors contributed 60 per cent of the total inflows, showing a 51 per cent year-on-year increase, while foreign inflows fell 21 per cent. Office investments grew 27 per cent to USD 779.9 million, whereas residential inflows dipped 17 per cent. Experts attribute this growth to strong investor confidence, policy support, and improving economic fundamentals, reflecting a sustained interest in India's real estate market.
Institutional investments in India's real estate sector rose by 11 per cent to USD 1.27 billion in the third quarter, driven by stronger fund inflows into office properties, according to Colliers India. Data from the consultancy firm showed that investments during this period reached USD 1,269.5 million, up from USD 1,148.7 million in the same period last year. Advertisement
Colliers India CEO Badal Yagnik highlighted that this increase demonstrates ongoing investor confidence in India's economic fundamentals and the resilience of its real estate market. Domestic investors contributed USD 762.4 million, accounting for 60 per cent of the total inflows, while foreign investors added USD 507.1 million. Notably, domestic investment rose sharply by 51 per cent year-on-year, whereas foreign inflows declined by 21 per cent.
Yagnik noted that domestic capital was largely directed toward office and residential segments, with office assets comprising more than three-fourths of domestic investments during the quarter. This trend underscores the continued appetite for both ready-to-use and under-development commercial properties. Despite caution from foreign investors amid global uncertainties, Yagnik expects the investment momentum to remain steady in the near term.
Breaking down the segments, institutional investments in office properties climbed 27 per cent to USD 779.9 million, compared with USD 616.3 million in the corresponding period last year. On the other hand, residential inflows fell 17 per cent to USD 319.7 million, down from USD 384.8 million in the previous year.
Institutional investments include contributions from family offices, foreign corporate groups, foreign banks, proprietary trading books, pension funds, private equity, real estate fund-cum-developers, foreign-funded NBFCs, listed REITs, and sovereign wealth funds.
Commenting on the broader scenario, Ankur Jalan, CEO of Golden Growth Fund, said the growth in institutional investments reflects strong investor confidence, supported by robust demand across all real estate asset classes. He also pointed out that the rationalization of income tax and GST, along with declining interest rates, is expected to boost consumption and GDP growth, further strengthening investor sentiment in the sector.
Source PTI
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