A new report by JLL India reveals a significant increase in foreign investment in Indian real estate during the first half of 2024. According to their data, foreign investors poured USD 3.1 billion into the sector, accounting for a whopping 65% of the total institutional investment during this period. This is a major jump compared to the same period last year, when foreign investment reached USD 2,939 million.
JLL India’s data also shows a healthy overall growth in institutional real estate investment. The total investment figure for the first half of 2024 sits at USD 4,760 million, reflecting a 62% increase year-over-year (compared to USD 2,939 million in H1 2023).
It’s important to note that this data contrasts with a recent report by Colliers India. They reported a 6% decline in total institutional investment for H1 2024, reaching USD 3,523.6 million compared to USD 3,764.7 million in the first half of 2023.
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.”
The JLL India report also dives into the specific types of real estate attracting investment. Warehousing emerged as the most popular sector, capturing 34% of the total investment pie. Residential and office spaces followed closely behind,each claiming a 33% and 27% share, respectively.
This surge in investment activity is further highlighted by the significant increase in deal volume. The first half of 2024 saw nearly double the number of real estate deals compared to the same period in 2023. Interestingly, the average deal size during this period remained steady at 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.
While foreign investment is a key story, the JLL India report also sheds light on domestic investor participation. In 2023,domestic investors significantly increased their activity, contributing 37% of total investments compared to a mere 19% average over the previous five years.
This trend seems to be holding steady in the first half of 2024, with domestic investors still holding a respectable 35% share of the investment pie.
