Source: Colliers
Investment inflows (USD million) YTD 2024 –
Asset Class | YTD (Jan-Sep) 2023 | YTD (Jan-Sep) 2024 | YTD 2024 vs YTD 2023 (% YoY Change) |
Office | 2,886.9 | 1,513.6 | -48% |
Residential | 707.9 | 1,030.9 | 46% |
Alternate assets* | 230.4 | 21.0 | -91% |
Industrial & Warehousing | 690.6 | 1,806.0 | 162% |
Mixed use | 42.3 | 305.6 | 622% |
Retail** | - | - | - |
Total | 4,558.1 | 4,677.1 | 3% |
*Note: Alternate assets include data centers, life sciences, senior housing, holiday homes, student housing, schools etc.
**Investment inflows in Retail were in YTD 2023 and YTD 2024
Source: Colliers
Quarterly investments in Office segment surged by 6.8X times over Q3 2023
After witnessing subdued activity in the previous quarter, investments in the office segment doubled on a QoQ basis, at USD 0.6 billion inflows. At the same time, investments also rose by 6.8X times as compared to the same period last year. Foreign investments accounted for 88% of the total inflows into the segment during Q3 2024. Going forward, robust demand and supply momentum in Grade A office spaces across the top markets will keep the investor confidence buoyant.
Apart from office assets, residential assets too witnessed notable inflows during the quarter at USD 0.4 billion, witnessing a substantial surge of 40% on a YoY basis.
"Private equity investments in the residential segment are on the rise, fuelled by home-ownership trends and growing interest from domestic as well as foreign institutional investors. In the first nine months of 2024, investments in the segment crossed USD 1 billion, marking a significant 46% year-on-year increase. Q3 2024 alone saw USD 0.4 billion in residential investments, accounting for one-third of the total investments in the quarter. Most of these investments were directed towards developmental assets, as institutional investors continue to partner with reputed developers in marquee residential projects. With a conducive domestic environment, ongoing festive season and a much-anticipated reduction in interest rates, investor confidence in India's residential real estate market is poised to remain intact," said Vimal Nadar, Senior Director and Head of Research, Colliers India.
Chennai & Mumbai together drove about 57% of the quarterly inflows
Chennai and Mumbai together accounted for about 57% of the total inflows during Q3 2024 backed by key acquisitions in office segment. Almost 70% of the inflows in Chennai during the quarter were driven by foreign investments. Mumbai and Delhi NCR cumulatively witnessed about 44% of the total quarterly investments in the residential segment. Furthermore, multi-city investments corresponded to 30% of the overall inflows during Q3 2024 and were predominantly directed towards office and residential asset classes.
City-wise investment inflows in Q3 2024 –
City | Q3 2023 | Q3 2024 | Investment share in Q3 2024 (%) | Q3 2024 vs Q3 2023 (%) | YTD (Jan-Sep) 2023 | YTD (Jan-Sep) 2024 | Investment share YTD 2024 (%) | YTD 2024 vs YTD 2023 (%) |
Bengaluru | 45.1 | 54.0 | 5% | 20% | 241.8 | 486.0 | 10% | 101% |
Chennai | 47.0 | 380.1 | 33% | 710% | 132.3 | 534.2 | 11% | 304% |
Delhi NCR | 24.3 | 79.6 | 7% | 228% | 492.0 | 417.5 | 9% | -15% |
Hyderabad* | - | - | - | - | 127.3 | 300.9 | 6% | 136% |
Mumbai | 196.6 | 277.6 | 24% | 41% | 585.8 | 406.7 | 9% | -31% |
Pune | - | 10.8 | 1% | >100% | - | 269.0 | 6% | >100% |
Others/ Multi-City | 480.4 | 346.6 | 30% | -28% | 2,978.9 | 2,262.8 | 49% | -24% |
Total | 793.4 | 1,148.7 | 100% | 45% | 4,558.1 | 4,677.1 | 100% | 3% |
Source: Colliers
Note: * Investment inflows in Hyderabad were limited in both quarters
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