Namma city secures highest realty funding in Q1 2024: Report

Bengaluru: With 25.6 per cent or over Rs 2,300 crore, Bengaluru’s real estate market secured the highest funding amongst the top-8 markets in India during the first quarter of the ongoing calendar year, according to a new report released by property consultancy Cushman & Wakefield on Wednesday. Of this, a majority share was channeled towards the office segment.

Overall funding into the Indian real estate sector during the January-March period stood at Rs 9,124 crore, which is 3 per cent higher than the corresponding quarter in 2023 and 39 per cent lower on a sequential basis.

The residential segment outshone other asset classes in the first quarter with a whopping 63 per cent share of the overall funding pie at Rs 5,743 crore. This was double the average seen in the past 8 quarters, the report highlighted. 

Additionally, nearly 48 per cent of the investments into the residential segment was focused on early stages of development across the top-8 cities.

Meanwhile funding into the office segment rose marginally to Rs 2,248 crore, from Rs 2,180 crore in Q1 2023.

While domestic investors contributed 57% of the total investments during the first quarter, foreign funding and collaborative deals accounted for the remainder. “This is in line with the trend witnessed in 2023 with domestic investors’ participation in Indian realty increasing at a constant rate,” the report noted.

This momentum is expected to continue in the ongoing financial year (2024-25) with potentially more diversified investments in the future, said Cushman & Wakefield managing director for valuation & advisory and capital markets, Somy Thomas. 

Equity investments into the sector during Q1 2024 stood at 58%, while debt investments surged to double the quarterly average level of the last eight quarters, per the report. The office segment continued to be the preferred category amongst equity investors with a 43% share, as almost all of the debt funding was channeled towards the residential segment.

Lastly, Mumbai led transactions by corporate entities during the March quarter, accounting for 57% of the total volume in the category amounting to Rs 1,278 crore.