Edelweiss Capital leads domestic investments during Q1 2024
NEW DELHI, Apr 13 (The CONNECT) –Foreign institutional investments in real estate sector during Q1 2024 amounted to USD 552 Mn registering a decline of 55% year-on-year and 27% on q-on-q.
This steep fall could be attributed to the cautious approach of foreign investors amid global macroeconomic uncertainty.
Domestic investors, however, showcased resilience and accounted for 98% of the total institutional investments received in the current quarter. Although the share has increased from 36% a year earlier, investments in value terms increased by only 21%.
Domestic investors invested around USD 541 Mn across multiple deals during Q1 2024.
Shrinivas Rao, CEO, Vestian, said domestic investors are bullish about India’s growth story and continue to pour in investments in the real estate sector. But foreign investors are cautious due to global macroeconomic uncertainty and geopolitical tensions, he observed.
Commercial assets (office, retail, co-working, and hospitality projects) garnered the highest investments of USD 232 Mn in Q1 2024, closely followed by residential assets at USD 225 Mn.
Despite an increase in the share of commercial investments to 42% in Q1 2024 from 39% a year earlier, they declined by 52% in value terms. Similarly, the share of residential investments also increased to 41% in Q1 2024 from 27% in Q1 2023.
However, investments declined by 33% annually in value terms. Investments significantly decreased by 73% in the industrial and warehousing sector in Q1 2024 over the previous year.
Bengaluru dominated the institutional investments in Q1 2024 with USD 299 Mn, followed by Delhi NCR at USD 110 Mn. Both the cities together accounted for around 74% of the total investments received in the current quarter.
Edelweiss Capital turned out to be the most active investor during the quarter with over USD 300 Mn worth of investments across the asset classes and geographies.
“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,” Rao said.
