Investment Trends in Indian Real Estate: Key Insights from Q1 2024 Report

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    The Indian real estate sector saw investments totaling USD 1.1 billion in the first quarter of 2024, with the residential segment leading the way with close to 693 million in investments, as per a report by Cushman & Wakefield.

    The residential sector has been experiencing growth due to strong housing demand and increased supply. In Q1 2024, it attracted many investors, accounting for over 63% of total realty investments for the quarter. This is double the average seen in the past eight quarters.

    Furthermore, nearly half of the investments in the residential sector focused on early-stage development in the top eight cities, indicating a growing investor interest and rising residential property values.

    In terms of investors, domestic investors contributed 57% of total quarterly investments, while foreign investors and collaborative deals made up the remaining 43%. Bangalore led in investment volume, with 25.6% of total investments, primarily in the office sector, followed by Pune with a 14% share.

    Equity investments constituted 58% of total investments in Q1 2024, with debt investments doubling compared to the average of the past eight quarters, mainly directed towards the residential sector. The office sector remained preferred among equity investors, followed closely by residential investments.

    Corporate transaction volumes saw a significant increase of 65% year-on-year, with Mumbai leading in transaction value, followed by Pune.

    Somy Thomas, MD of valuation & advisory and capital markets at Cushman & Wakefield, noted the strong quarter of capital inflow into the Indian real estate sector, driven by renewed confidence from customers and investors. Domestic investors continued to increase their investments, providing stability amid global uncertainties. The momentum is expected to continue into the new financial year, with potential for more diversified investments.

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