Foreign Investors Pour USD 3.1bn into Indian Real Estate in H1 2024

New Delhi, Jul 5 (PTI) Foreign investors infused USD 3.1 billion in Indian real estate during January-June this year, accounting for 65 per cent of the total institutional investment, according to JLL India.

Real estate consultant JLL India data released on Friday showed that the total institutional investment in real estate rose 62 per cent to USD 4,760 million in January-June 2024 from USD 2,939 million in the same period of last year.

In complete contrast, another property consultant Colliers India, earlier this week, reported a 6 per cent decline in total institutional investment in real estate at USD 3,523.6 million during the first half of 2024 as against USD 3,764.7 million in the year-ago period.

According to JLL India, institutional investments in real estate surged to USD 4.8 billion in January-June this year.

"This already represents 81 per cent of the total investments in 2023, which amounted to USD 5.8 billion," the consultant said, adding that "unshakeable investor confidence in India prevails amidst global uncertainties and the election season, exemplifying the country's robust economic growth story".

Out of the total inflows, the warehousing sector led at 34 per cent share of investments followed closely by residential at 33 per cent share and office at 27 per cent.

The first half of 2024 exhibited nearly twice the number of deals compared to the same period last year, with an average deal size of USD 113 million.

"Foreign Institutional Investors (FIIs) dominate Indian investments amounting to USD 3.1 billion which is a 65 per cent share of the total investments in January-June 2024," JLL said.

In 2023, domestic investors accounted for 37 per cent of investments, compared to an average of 19 per cent over the previous five years. This trend appears to continue in H1 2024, with domestic investors representing a 35 per cent share.