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India's real estate sector experienced a significant investment boost in Q2 2024, attracting USD 2.77 billion, pushing the total for H1 2024 to a record USD 3.9 billion, according to Cushman & Wakefield. This represents a 50% increase from Q1 and a 39% year-on-year rise. Delhi-NCR led with USD 532 million in Q2, a 74% increase from last year, while Bengaluru and Hyderabad secured USD 509 million and USD 320 million, respectively. The Logistics & Industrial sector captured 56% of Q2 investments. Foreign investors contributed 76.3% of the total, reflecting strong confidence in India's market.
India's real estate sector saw a boost in investment during the second quarter of 2024, drawing in USD 2.77 billion, according to Cushman & Wakefield's latest report. This rise pushed total investments for the first half of 2024 to a record USD 3.9 billion. The second quarter's figures represent a 50% increase compared to the previous quarter and a notable 39% rise year-on-year, reflecting growing investor confidence in the Indian real estate market. Advertisement
Delhi-NCR led the way in private equity investments for Q2 2024, attracting USD 532 million, which is 19% of the total investment. This marks a 74% increase compared to the same period last year. Delhi-NCR also topped the list for the first half of the year, with investments totaling approximately USD 633 million, representing 16% of the total. The city's investment boom is largely driven by the office sector, with major equity buyouts, and growing interest in the luxury residential segment.
Bengaluru followed with 13% of the total investment share, amounting to USD 509 million, while Hyderabad secured 8% with USD 320 million. Multi-city deals, covering various regions, made up the remaining 48% of the total investments, highlighting a diversified investment approach.
The Logistics & Industrial (L&I) sector was the largest beneficiary of investments in Q2, capturing 56% of the total, equivalent to USD 1,542 million. This sector also led for the first half of the year with 41% of the total inflows. The office sector followed, with USD 924 million in Q2 and USD 1,196 million for H1. The residential sector, though trailing, received USD 309 million in Q2 and USD 1,002 million in H1.
Foreign investors played a significant role, contributing 76.3% of the total investments in Q2 2024, particularly in the L&I sector. Investments involving a mix of equity and structured debt made up 62% of the total inflows, while pure equity deals represented 25%.
On the macro-economic front, India's manufacturing sector grew by 9.9% year-on-year, and the tertiary sector saw a 7.6% annual increase. GST collections for June 2024 also rose by 8% year-on-year, indicating strong domestic transaction volumes.
Somy Thomas, Managing Director of Valuation & Advisory and Capital Markets at Cushman & Wakefield, highlighted that the USD 3.9 billion of private equity inflows during the first half of 2024 already surpasses 70% of last year's total. He attributed this growth to infrastructure investments, particularly in logistics and industrial sectors, supported by public investments in multi-modal economic corridors. Thomas anticipates continued positive momentum and a strong year for private equity investments in commercial real estate, potentially exceeding initial expectations.
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