New Delhi, 21 October 2024 — India’s real estate sector has seen a significant influx of foreign investment, with USD 436 million flowing in during the third quarter of 2024, marking a 139% year-on-year increase, according to Vestian Research. Institutional investments overall reached USD 960.8 million in Q3 2024, a 41% rise compared to the same period last year, despite a sharp decline from USD 3.1 billion in the previous quarter.
The share of foreign investors has surged from 27% in Q3 2023 to 46% in Q3 2024, while domestic investors’ share fell to 43% from 71% year-on-year. However, the decrease in domestic investment value was only 15%.
Shrinivas Rao, CEO of Vestian, noted that the growth reflects confidence in India’s economic prospects, bolstered by strong GDP growth and rapid infrastructure development. Residential assets remained a preferred choice for domestic investors, while foreign investors dominated commercial deals, which accounted for 71% of total investments in Q3 2024, up from 24% a year earlier.
Chennai emerged as the top city for investment during this period, capturing 48% of total investments, primarily in industrial and warehousing sectors. Additionally, proptech platforms gained traction, representing 22% of the total investments, a trend likely to continue with advancements in artificial intelligence and machine learning within the real estate sector.
Also Read: Industrial & Warehousing sector records 21.9% annual demand growth in H1 2024
