The second quarter of 2024 witnessed institutional investments of USD 3.1 Bn, registering a sharp increase of 96% over the same quarter a year ago and 464% over the previous quarter. As the world economy is stabilizing amid geopolitical challenges, investors actively participated, resulting in the highest institutional investments in a quarter post the pandemic.
In contrast, with USD 0.3 billion of investments in office assets, the segment witnessed subdued activity in Q2 2024. Although the annual decline was significant at 83%, the QoQ drop was relatively modest at 41%. The surge in industrial & warehousing, and residential investments resulted in a healthy investment volume of USD 3.5 billion for H1 2024 at an overall level, making up for the slow start in first quarter. Foreign investments remained robust, accounting for 81% of the total inflows in Q2 2024, predominantly led by investors from the US and UAE.
Owing to rapid industrial growth and the emergence of one of the fastest growing real estate segments in the country, India’s warehousing sector is set to cross the 300 million square feet (MSF) mark by 2025, according to a report jointly launched by CREDAI and CRE Matrix. Currently, the overall Grade A warehousing stock stands at 216.2 MSF. In Q1 CY ’24, India witnessed a 5% increase in rentals – reflecting how India’s warehousing demand continues to surpass supply – with the absorption to supply ratio standing at 1.4 in the quarter.
Provident Housing aims to stand out as a top brand in the large property landscape of Mumbai Metropolitan region (MMR). Sensing that below INR one crore housing is the most desired but least served segment of housing in the region, the developer with expertise in catering to mass housing has big plans in the pipeline across west zone. In an exclusive interview with Ravi Sinha, Rajat Rastogi, CEO-West & Commercial Assets (Pan-India), Puravankara Limited, sounds optimistic that the brand has good recall and acceptance among the home buyers of the region.
No one has got a clear answer to the core of the problems and every industry stakeholder has his own point of view. However, the economies of scale suggests it definitely helps the developers to undertake cost-effective measures since material procurement happens at a group level. This gives large developers an advantage over other smaller developers and projects. Also, the duration of construction has an impact on the cost. The developers must ensure the completion of projects on time, which could help us sell the properties at a faster pace and keep the cost under control.
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.
Institutional investments in Indian real estate sector touched USD 1.0 billion in the first quarter of 2024, signalling a steady and positive start to the year. While this was a 40% drop compared to the same period last year, India’s real estate investments showed improvement on a sequential basis registering 21% QoQ rise. Foreign investments retained their dominance, forming 55% of the total inflows during the quarter. Domestic investments too witnessed a notable rise at 15% YoY in Q1 2024. The share of domestic inflows in overall institutional investments continued to rise to 45% in Q1 2024, compared to 24% in Q1 2023.
2024 is anticipated to be a more dynamic year for the both the Asia Pacific real estate markets as well as capital in the region remaining the dominant investor in global real estate. The ability to act quickly, dig deeply into markets and sectors to identify value, and forge productive partnerships will be key to making the most of the region’s diversity and increased opportunity, claims a report by Colliers.
The report of an impending housing recession in the US housing market is a worrying factor for a section of analysts in India. As per the reports coming out of the US market, the pricing remains firm but the sales have slowed down. As per a report by the NAR (National Association of Realtors), the home sales have slowed down for six consecutive months in July. Track2Realty reports.
Real estate developer M3M India has purchased a 13-acre land parcel in Noida. The outright purchase has been through e-auctions and the developer plans to invest around Rs 2,400 crore to develop a mixed-use project. M3M India has a major presence in Gurugram and this is part of the company’s market expansion to Noida through this project.