Foreign inflow into realty slides by 30% in 2023, but domestic investment doubles

Inflow of funds in Indian real estate from foreign investors fell by 30 per cent to $2.73 billion last year, but the influx jumped more than two times from domestic players to $1.51 billion, according to real estate consultant Vestian.

According to Vestian’s data, total institutional investments in real estate declined by 12 per cent to $4.3 billion in 2023 from $4.9 billion in the previous year.

The consultant has highlighted that investments from foreign funds fell by 30 per cent annually because of their cautious approach but rose by 120 per cent from domestic investors.

Domestic investors pumped in $1.5 billion last year as against $687 million in 2022.

However, inflow from foreign funds stood lower at $2.7 billion last year as against $3.9 billion in 2022.

Accordingly, the share of domestic investors increased to 35 per cent in 2023 from 14 per cent in 2022.

Vestian CEO Shrinivas Rao said: “Despite uncertainty in demand across the real estate sector, investments remained robust throughout the year. The optimism of domestic investors kept the real estate market buoyant as they continued to show confidence in India's growth story.”

Although investments reached a five-year low in 2023, Vestian expects resurgence in 2024 on the back of robust performance of the Indian economy and a healthy pipeline of planned infrastructure developments.

Report By