Gurgaon, 18 March 2025 – Real estate investments in the Asia Pacific (APAC) region rose by 12% year-on-year (YoY) in 2024, reaching $155.9 billion, according to Colliers’ latest report, Asia Pacific Investment Insights H2 2024. The report highlights a sustained recovery across the region’s top nine markets, with India standing out as a high-growth market.
APAC Investment Surge Driven by Key Markets
In the second half of 2024, total real estate investments in APAC reached $83.2 billion, marking a 6% YoY growth. South Korea, Japan, and Mainland China led the market, collectively accounting for 59% of these investments. However, the highest YoY increases in investment volumes were observed in India, South Korea, Taiwan, and Australia, with each country recording over 30% growth.
Investment Growth in APAC (H2 2024 YoY)
India’s Real Estate Investment Momentum
India saw institutional real estate investments rise by 88% YoY in H2 2024, reaching $3.0 billion. The office segment remained dominant, attracting 47% of total investments, followed by industrial & logistics assets at 27%. Mumbai emerged as the leading investment destination within India, particularly for office acquisitions.
According to Badal Yagnik, CEO of Colliers India, “Institutional investments in Indian real estate increased by 22% in 2024, totaling $6.5 billion. This trend is expected to continue in 2025, supported by strong economic growth, policy support, and easing monetary conditions.”
Institutional Investments in India by Asset Class (H2 2023 vs H2 2024)
Breakdown of India’s Institutional Real Estate Investments
The following table provides a comparative breakdown of institutional investments across different asset classes in H2 2023 and H2 2024:
| Asset Class | H2 2023 (USD Million) | H2 2024 (USD Million) | YoY Change (%) |
|---|---|---|---|
| Office | 215 | 1442 | 571% |
| Industrial & Logistics | 527 | 831 | 58% |
| Residential | 356 | 503 | 41% |
| Retail | 0 | 104 | NA |
| Hospitality | 0 | 0 | NA |
| Alternatives & Others | 518 | 155 | -70% |
| Total | 1616 | 3035 | 88% |
2025 Outlook: Steady Growth in APAC Investments
Industry experts predict that real estate investments in APAC will remain strong in 2025, fueled by economic growth, declining borrowing costs, and an increased focus on office, industrial, and logistics assets. The retail and hospitality segments are also witnessing renewed investor interest, with retail investments in APAC growing by 31% YoY to $15.0 billion in H2 2024.
Chris Pilgrim, Managing Director of Global Capital Markets at Colliers Asia Pacific, stated, “The APAC real estate market remains resilient, with institutional investments rising steadily. In 2025, the office segment will continue to thrive, while industrial, logistics, and residential sectors will remain in focus. Retail and hospitality will also see increased activity as investors capitalize on recovery trends.”
With favorable economic conditions and an influx of foreign investments—accounting for 57% of India’s total inflows in H2 2024—India’s real estate market is expected to maintain its growth trajectory in 2025. Both foreign and domestic investors are likely to continue diversifying their portfolios, particularly in high-yield segments such as office and industrial & warehousing.
SFI Analysis
India’s real estate market demonstrated strong investment momentum in H2 2024, with an 88% year-on-year surge, reaching $3.0 billion. Office assets attracted the highest share of investments at 47%, followed by industrial and logistics at 27%. Mumbai led the surge, driven by office asset acquisitions. Institutional investments, particularly from foreign entities, accounted for 57% of the total inflows, reflecting strong global investor confidence. With easing monetary policies and stable economic growth, investment activity is expected to sustain in 2025. Segments like retail, hospitality, and alternative assets may also gain traction, diversifying India’s real estate growth trajectory.
Also Read: APAC Investor Optimism to Drive Institutional Investments in Indian Real Estate in 2025
