The second quarter of 2024 witnessed a substantial surge in institutional investments into India, totaling USD 3.1 billion. This figure marks an impressive 96% increase compared to the same period last year and a staggering 464% jump from the previous quarter. As global economic conditions stabilize amidst ongoing geopolitical challenges, investor confidence in India’s growth prospects has surged, resulting in the highest quarterly institutional investments post the pandemic.
Foreign investors dominated the investment landscape, accounting for a significant 71% share of the total investments in Q2 2024. Their keen interest in India’s robust economic growth trajectory drove this influx. Meanwhile, domestic investors contributed around 20% of the total investments, marking a notable decline from 98% in the preceding quarter. Despite this, domestic investments in value terms saw an 18% increase over the previous quarter. The Industrial & Warehousing sector emerged as a key beneficiary, buoyed by a landmark USD 1.5 billion deal. This transaction, involving Abu Dhabi Investment Authority (ADIA), KKR, and Reliance Retail Ventures Limited (RRVL), constituted 48% of the total investments in Q2 2024. Following closely were investments in residential and commercial assets, comprising 24% and 20% shares respectively, spanning office spaces, retail outlets, co-working spaces, and hospitality projects. Notably, commercial investments reported a 56% year-on-year decline in value terms during Q2 2024, primarily due to a major deal concluded between GIC and Brookfield in the corresponding quarter of 2023.
Multi-city transactions dominated the investment landscape, capturing 61% of the total investments in Q2 2024. Mumbai and Hyderabad emerged as prominent investment destinations, securing 13% and 12% shares respectively. Key investors during the quarter included KKR, ADIA, GIC, Xander, Blackstone, Mitsui, Nisus Finance, SWAMIH Fund, and HDFC Capital, underscoring their active participation in India’s burgeoning investment market.
