Chennai: Real estate sector witnessed record high funding in the first half of 2025 at around $4.8 billion, already reaching 81 per cent of the total investments in 2024.
During the January-June period of 2024, the realty sector saw investments amounting to $4.760 billion. This was 62 per cent higher than $2.939 billion received in the same period of last year. The investments of H12024 are 81 per cent of the $5.8 billion funding attracted in 2023. The 40 deals reported in H12024 are twice the number recorded in the same period last year.
Foreign Institutional Investors (FIIs) dominated investments at $3.1 billion, which is a 65 per cent share of the total investments in H12024. Domestic investors made up for 35 per cent share of investments against 37 per cent in 2023.
Warehousing sector with 34 per cent share of investments was followed closely by residential with 33 per cent share and office sector with 27 per cent. Warehousing sector's investment surge was primarily driven by a single deal which accounted for over 92 per cent of the total transaction volume.
The residential sector has experienced a significant revival, achieving an all-time high half-year investment of $1.6 billion and this can be attributed to the regulatory reforms and improved transparency in the segment in the last 5-7 years.
With a total of 25 deals, residential investments surpassed the office sector by 25 per cent in terms of transaction volume. Domestic investors showed a greater inclination towards residential properties, while foreign investors continued to favour the office and warehousing sector. About 68 per cent was structured debt and 57 per cent of the capital flow in the residential sector came through domestic domiciled funds.
Going ahead, an increased investment in emerging sectors is expected. Segments such as data centres, life sciences, student housing, and healthcare will be in focus.
