A recent report has highlighted that the private equity investments in India’s residential market are on the rise.
This is fuelled by home-ownership trends and growing interest from domestic as well as foreign institutional investors.
According to a report by real estate consultancy firm Colliers, in the first nine months of 2024, investments in the segment crossed $1 billion, marking a significant 46 per cent year-on-year increase.
The third quarter of 2024 alone saw $0.4 billion in residential investments, accounting for one-third of the total investments in the quarter, it said.
Most of these investments were directed towards developmental assets, as institutional investors continue to partner with reputed developers in marquee residential projects.
The report further said that the office segment accounted for 54 per cent of the total investments during the third quarter, followed by residential, with a 33 per cent share.
Residential inflows during Q3 2024 were particularly driven by domestic capital while the overall domestic investments remained robust at $0.5 billion, driving 44 per cent of the total inflows during the quarter.
After witnessing subdued activity in the previous quarter, investments in the office segment doubled on a QoQ basis, at $0.6 billion inflows.
At the same time, investments also rose by 6.8X times as compared to the same period last year. Foreign investments accounted for 88% of the total inflows into the segment during Q3 2024, the report said.
Giving a geographical analysis, the report said Chennai and Mumbai together accounted for about 57 per cent of the total inflows during Q3 2024 backed by key acquisitions in the office segment.
Almost 70 per cent of the inflows in Chennai during the quarter were driven by foreign investments. Mumbai and Delhi NCR cumulatively witnessed about 44 per cent of the total quarterly investments in the residential segment.