In 2023, India’s real estate sector demonstrated resilience by attracting over $5.8 billion in institutional investments, marking a significant 14% increase from the previous year. Foreign institutional investors, contributing 63%, played a vital role despite a decline in investment share from the Americas. Notably, domestic investors surged to 37%, showcasing a substantial increase compared to the 19% average observed over the past five years.
Equity remained the preferred investment choice at 81%, with non-core assets leading transaction volumes at 53%, indicating a heightened risk appetite among investors. The office sector continued to dominate, commanding 52% of the total share, while emerging sectors like warehousing, data centers, and student housing are poised for substantial institutional investments in 2024.
India’s real estate sector maintained positivity in 2023, exceeding the $5 billion mark for the fifth consecutive year. The introduction of Real Estate Investment Trusts (REITs) provided new avenues, with the Nexus Select Trust REIT listing receiving a robust response.
