In 2024, Q2 has been good for Indian real estate, as property business marks flourishment. According to the report by Cushman & Wakefield Limited, Indian real estate marks an astonishing high. In the second quarter of this year, the property market in India lured a significant business of UDS 2.77 billion.
The report further shows a 1.5x increase in business activities in comparison to the first quarter of 2024. It renders a phenomenal infusion of total investments in Q1, 2024 for a record-breaking USD 3.9 billion. A substantial 39% growth at year-on-year basis exhibits the confidence of investors in Indian real estate.
Based on the City-wise report, Delhi-NCR emerges as the choicest destination for private investment in Q2. The national capital region secured the first spot by attracting USD 532 million and 19% of the overall share in investments. It also signifies 74% year-on-year growth. The Delhi-NCR region secure the first spot by securing investments worth USD 633 million. Not to forget, 16% share of the record i.e. USD 3.9 billion investment.
The national capital region witnessed a surge in demand for offices and luxury homes. It includes an inclination toward penthouses and other high-end luxury residential properties.
Following Delhi is Bangalore with 13% (USD 509 million) and Hyderabad with 8% (USD 320 million) investment in H1. The diverse investment strategy has taken a climb with 48% of investments accounting for multi-city deals.
Somy Thomas, Managing Director, Valuation & Advisory and Capital Markets, Cushman & Wakefield said, “USD 3.9 billion of private equity inflows during the first half of 2024, already surpassing 70% of last year’s total, highlights the remarkable growth and investor confidence in India’s real estate market. This surge is primarily driven by infrastructure-related sectors like logistics and industrial, fuelled by significant residential spaces further solidifies the market’s appeal. With continued positive momentum, we anticipate a buoyant year for private equity investments in the commercial real estate sector, potentially exceeding initial expectations.”
In the report, under the sector-wise surge in investment in Q2, 2024 was a major share by Logistics & Industrial (L&T). It secured 56% of total investments (1,542 USD million) and retained its top position with 41% of the H1 inflows.
According to the report, foreign investors played a vital role with a contribution of 76.3% of the overall investment in Q2, 2024. It inclines a major portion towards these investments against Logistics and industrial sphere.
Whereas in the macro-economic sector, manufacturing slid upscale by 9.9% YoY and the tertiary sphere grew by 7.6% annually. The GST collection of 2024 soars by 8% YoY indicating robust domestic transactions.
