Institutional investment in real estate declined by 55% during Q1 2024 to $552 million. This decrease has been attributed to the cautious stance of foreign investors, influenced by global macroeconomic uncertainties, according to the consultancy firm Vestian.
Shrinivas Rao, FRICS, CEO of Vestian, said, “Domestic investors are bullish about India’s growth story, continue to pour in investments in the real estate sector. On the other hand, foreign investors are cautious due to global macroeconomic uncertainty and geopolitical tensions.”
In terms of asset type, commercial real estate—which includes office spaces, retail outlets, co-working spaces, and hospitality projects—drew the most investment, with $232 million directed to these sectors. Residential real estate followed closely with $225 million in investments.
Bengaluru leads
Geographically, Bengaluru emerged as the leader in attracting institutional investments, with a total of $299 million, followed by the National Capital Region (NCR), which saw $110 million in investments. Together, these two regions accounted for about 74% of all investments in this quarter. Edelweiss Capital was notably the most active investor, deploying over $300 million across various asset classes and locations.
Rao further stated, “The Indian real estate sector is expected to garner increased investments in the coming months on the back of a strengthened economic scenario and robust demand.”